Aggressive Stock Trading Strategy

Investors who practise the aggressive stock trading strategy are active in buying and selling shares.
And they are trying as much as possible beat the market. They usually trade in either growth, situational or speculative stocks.

These stocks presumably can give higher returns as they offer very high price volatility. But they carry higher degrees of risk too. This aggressive stock trading strategy may yield high returns when the market trend is positive (bull market).

However, it will also result in rapid losses if the market trend is against the investor. With stop loss in place, they can limit their continual losses.

Speculative Stocks

Market talks, rumours and tips are the essence of this kind of stocks.

Penny stocks or small cap shares at times become the subject of syndicate, ramping by syndicates who manipulate the stock prices at the expense of unwary investors (most of the time, novice investors is the victim).

Therefore, investments in speculative stocks carry a high degree of risk. Although the returns may be high, the investor can also incur considerable losses if he loses the punt.

Situational Stocks

Situational stocks are stocks which display once-off price action which prompted by the occurrence of specific events or development.

For example, with current high oil prices, oil and gas companies are the most sought after stocks. Whatever oil and gas related stocks soar in price. Same goes to the dot com companies before it burst in the new millennium.


Price action on the stock market is also influenced by conceptual theme plays.
Growth stocks

Growth stocks refer to the stocks that are expected to receive increased in business opportunities. This results to higher earnings growth.
Companies in high growth industries and those embarking on viable business projects, which able to generate higher profit margin, is considered as growth stocks too.

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