05-24-2024, 05:22 PM
Effective trading strategies include diversification (spreading investments across sectors to reduce risk), stop-loss orders (automatically selling stocks at a preset price to limit losses), and dollar-cost averaging (investing fixed amounts regularly to mitigate market volatility). For example, diversify by holding tech stocks like Apple and healthcare stocks like Johnson & Johnson, use stop-loss orders on volatile stocks like Tesla, and apply dollar-cost averaging with ETFs such as Vanguard S&P 500 (VOO).