Here are some well documented types of strategies:
1. The trend is your friend
This means that a share that is trending well in one direction is likely to continue (depending on the market that you are trading – you will need to confirm that this holds true for your target market).
2. Mean reversion
When a price dips sharply in the short term, it may rebound back up in the short term. Again you should test this on the market you’re trading to see that this trend holds true for that market.
3. Penny dreadfuls
Although with a low probability of win (low win loss ratio), if it rises, the rises can be very striking indeed with many hundreds and thousands of percentage increases.
4. Fundamental analysis
This means that you analyse which stocks and shares are possibly likely to go up because of fundamental reasons such as good management, new discoveries and breakthroughs, strong market demand, advantages over competition, good PE ratios etc.
These share and stock trading strategies and systems are based on different premises and as such you can build trading systems around them.
The second question to ask is regarding your broker:
1. A good broker can give you competitive brokerage rates.
2. If you are a sophisticated investor in your country (definition is different in each country), then you can take advantage of share and stock trading opportunities that non sophisticated investors do not have access to.
3. Do you want a full service broker?
An online stock broker may be only online, or they may have phone facilities, It depends on what you want and the fees can of course be higher for a full service broker. Stock brokers in general vary widely in their specialities, in their services, and their knowledge of trading strategies and the current state of the market and stock rumors and stories that are going around.