A stock trading strategy is a structured plan that guides how a trader buys and sells stocks in financial markets. It outlines the rules and criteria for identifying opportunities, managing risk, and deciding when to enter or exit a trade. Having a clear strategy helps reduce impulsive decisions driven by emotions, such as fear or greed, and allows traders to act with consistency.

Trading strategies can be built on fundamental analysis, technical analysis, or a combination of both. A fundamental approach looks at company earnings, industry trends, and economic data to determine whether a stock is undervalued or overvalued. A technical approach, on the other hand, focuses on price patterns, charts, and indicators like moving averages, volume, or momentum signals to forecast future price movements.

Strategies can also differ based on time horizons. Day traders aim to profit from short-term movements within a single day, while swing traders hold positions for several days or weeks to capture larger moves. Long-term strategies focus on identifying and riding trends over months or years.

Risk management is a key part of any stock trading strategy. This includes setting stop-loss orders, managing position sizes, and defining acceptable risk-to-reward ratios. Ultimately, a good stock trading strategy provides structure, discipline, and a framework for making consistent, informed trading decisions.