By: Michael E. Martinez

Even if you aren't an investor, this strategy you may be familiar with. Most novice investors use this method because it is how they are taught. The idea of this strategy is self explanatory really, you buy the stock at a lower price and sell at a higher price, however it can get more complicated than that.

Before you start a strategy like this, you need to determine your entry price for the stock as well the exit price for the particular stock. Market timing, which is difficult in itself, is the key to success in using this strategy effectively. Like the other strategies, don't buy the stock all at one time, buy them in smaller portions in order to make not just this strategy, but any strategy work to your advantage.

With some chart patterns with stocks, you can define a trading range and use the same buy low and sell high strategy over and over again. Also, keep in mind that this isn't always the best strategy to make the most money out of a stock, but it is the most popular and widely used.

If you are a professional investor, you may wan't to use a variety of strategies to invest. However, if you are a novice investor that doesn't have a lot of time to study technical patterns, this is probably the best method for you.