How Do Trading Strategies Operate?

Stock Trading strategies

Preparation is the best time to sharpen your negotiation strategy. You must define the path and the means to be mobilized to achieve the objectives you have set for yourself. To prepare for a negotiation, it is important to clearly identify Stock Trading strategies, then the resulting tactics.

This Step Is Important To Know How To Negotiate Effectively.

Overall, two major extreme approaches are possible:

  • Competitive strategies   that result in a winner and a loser,
  • Cooperative strategies   where the objective is to find a consensus.

Competitive Mode

This approach requires a great deal of caution. The balance of power takes on its full importance here. The negotiators are ready to use all the means at their disposal to influence the other. They use and abuse manipulation and coercion.

They deliver snippets of information so as not to have to reveal their game. To know how to keep their trumps until the last moment before showing their cards and thwarting the maneuvers of the person facing them. They even go so far as to ignore questions from the opposing party and harden their tone, put pressure on them, set traps to destabilize their adversary. A real role-playing game! In extreme cases, a certain aggressiveness may even set in. These are difficult, trying negotiations. A real sporting match!

Whoever holds the power or has a psychological ascendancy over the other party is in a position to dominate the debates.
The objective of the “competition” mode is to obtain a short-term result.

Cooperative Mode

The strategy is different. Here the objective is to find common ground, generally a long-term cooperation, a win-win agreement strengthening the customer relationship. The seller implements his sales techniques while ensuring the loyalty of his customer while defending his margins.

For the buyer, apart from questions of price and discounts, the important thing is to know that he can count on the services of his supplier. And of course it is not by “pressing” him on prices or by putting pressure on him on his commitments that he will be inclined to engage in a win-win partnership.

It is a sometimes complex, but constructive negotiation for a mutual benefit. A key word: argue by relying on your persuasiveness! The frustration of his interlocutor is to be avoided with this style of negotiation.

The exchange, active listening, questioning, reformulation, argumentation, non-verbal observation are all levers to carry out this type of negotiation. Negotiators adept at this “win-win” approach show real empathy and know how to negotiate finely. The displayed position is positive. They are able to negotiate a compromise to remove blockages and satisfy both parties. You have to know how to make concessions to obtain the desired consideration. The relational side is very important. This is a classic “negotiating” strategy in sales interviews.

Choice of Negotiation Tactics

After choosing the dominant mode, it is necessary to refine your approach, go into detail by defining what you are going to offer, when, after which arguments, what concessions to make, the alternative solutions and the fallback strategies. This is the tactic you will follow to achieve your goals:

In front of you: what resources are available to buyers? What are they waiting for?

are their motivations? What alternatives can they consider? What negotiation strategy will they deploy?

You: what resources do you have? What tactic are you considering? are the possible outcomes? What are the counterparties to negotiate?

How fallback solution, threshold below which you will not go (the objective is that the solution resulting from your negotiation techniques is greater than or equal to this option)?

What argument to use?

The Parameters to Be Taken Into Account by the Negotiator:

The Challenges of Negotiation

You are not going to conduct a negotiation in the same way with a client that weighs heavily on your turnover as with a prospect. In the first case, you will have to show some control and weigh the consequences of any commitment (in particular to defend your margins), in the second, you can take more risks, try more daring strategies.

The Interlocutor

In addition, your approach will be different according to your interlocutor: is it someone open and seeking contact or is it someone cold, not showing any feelings?

Your Personality and Negotiating Skills

In developing your negotiation strategy, you need to set goals, define possible options, link them to scenarios and structure a pitch. The essential point is to be prepared as well as possible to know what position to adopt if your interlocutor tries to impose his own conditions on you…

Also, remember that the art of negotiation can be learned. Whatever the situation, if you’ve mastered the techniques – if not at least the basics of negotiation – you’re in a position to get what you want.

Read more: Stock Trading Strategy for a Lifetime Success?

Most Popular

To Top