Investment Strategy
Golden rules of Investing Investing your money without an investment strategy is like a football team going into a game without a playbook. Although they are not required, they significantly improve your chances of winning. Creating an investment strategy should be your #2 step after you learn some of the basics of investing in the stock market like how to read stock quotes and how to buy stocks and other
Types of Investment Strategies Value Investing the principle behind value investing is simple: buy stocks that are cheaper than they should be based on their long-term earnings potential. Finding stocks that are under-priced takes a lot of research on the fundamentals of the underlying companies. Income Investing A great way to build wealth over time, income investing involves buying securities that generally pay out returns on a steady schedule.
Growth Investing An investment strategy that focuses on capital appreciation. Growth investors look for companies that exhibit signs of above-average growth, through revenues and profits, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios. Small Cap Investing An investment strategy fit for those looking to take on a little more risk in their portfolio. As the name suggests, small cap investing involves purchasing stock of small companies with smaller market capitalization
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