There are many people interested in day trading but are new to the complications involved in the whole process. Most of the interested people overload their charts with numerous technical indicators and are constantly searching out and testing new systems to become rich.
Remember, that the most basic systems are mostly the most profitable ones. While looking at the price patterns of different companies, one will notice that when a stock is moving upwards, it never goes up in a straight perfect line. Even when a company has a long-term upward trend, there are always few pull-backs along the way.
So, therefore, if you are looking for long term investments, then a very effective and at the same time very simple share trading strategy would be to patiently wait for a pull-back to happen and then take the plunge and enter a long position as soon as the price starts to soar high.
To begin with this strategy, you can take the help of a technical indicator or two. So, start by identifying shares that are already established in upward trends, and then patiently then wait for a pull-back, and for the point where you can hopefully see, for instance, the EMA (5) cross below the EMA (20) and also the parabolic SAR turning into red.
Then, you just simply wait for the price to soar up back again and recommence their upwards trend, which is mostly signalled by the parabolic SAR turning green again and also the EMA (5) again crossing back up through the EMA (20).
So, now it might be clear for you to see that a simple share trading strategy can work wonders and produce some excellent results in the end. Few of the simplest strategies can sometimes be much more effective than the most complex strategies and systems which many traders use.
To be very frank, successful share trading is not really that difficult a task. One just simply needs to look for shares that are either climbing upwards or downwards, and then to look for a way of profiting from this trend. This can be done by using a simple system such as the one mentioned above.
So, look out for a simple system or use the one mentioned above to make quick wealth from the share market.