1. Using Level II NASDAQ or Level III buy and sell methods when you're a 1/4 or a 1/2 Point ahead-- day trading scalping. This is a good method if you have some year's technical experience as a trader. You need to have a solid capital base, at least $100,000 in the account. You need to be a tough individual to digest the upswings and the downswings in the market, and know the difference between SOES and all other ECNs. You need to watch at least one screen extensively and probably see several screens all through the trading hours. Past records indicate that about 80% of the people trading this way fail within six months. With no entry or exit plan, the investor's only goal is to make a lot of money. Just because you have heard much about a particular share, is the worst reason to buy it, especially for short term trading. The trader has no idea whether the stock has already exhausted its run, or it is at the starting point. Assuming that luck favors the trader and the stock goes up, without the estimate of the exit position, the chances of losses are real.

2. Buy stocks and hold them.

This is comparable to the fixed deposits in a bank; only your incomes or losses are not fixed and you can not calculate them accurately in advance. When you hold the stocks for a longer period than they are going up, your capital is at risk. The prices of the shares may again rise eventually, but the question is when? You can expect moderate profits if you are willing to wait for a long period.

Overtrading is the common mistake which inexperienced traders always fall victim. They'll enter a position, lose money on it... panic, and then quickly enter another position, and risk more money, to try to make what they lost. Sometimes one has to encounter a series of losses thus.

3. This is the safe method that gives the investor a reasonable level of profit. Capitalize on getting 10% profit at a time based on a specific share movement. Use stop loss to limit risk.

Capitalize on capturing 10% profit at a time based on a specific share movement. Use stop loss to limit risk. Let not your emotions overrule your decision. You may love your shares but the shares do not love you. Their performance is based on technical and many market forces that mutually interact and influence each other.

If you do not make regular profits in your trade, that could be due to anyone or more of the following reasons: the absence of clear strategy in trading; lack of discipline to stick to the strategy evolved, being frightened by the adverse market reports; lack of emotional balance while trading or investing. The TV channels and the mass media fuel the misconception that trading is easy. Learning technical analysis is fine; but employing the strategy is important. Unless you have a good strategy, you do not stand a chance in the market. Stock market is not an illogical game; it has its own logic.