Investment Strategies to Learn Before Trading In Stock Market

1. Blog1: equity99.com Investment Strategies To Learn Before Trading In The Stock Market Whether you are a seasoned investor or a beginner, you must understand the investment or trading strategies before trading. Indeed, it is the safest and the most effectives ways to remain safe. In other words, you can easily reduce the risk. The best thing about investing strategies is that they are easy to understand, focused and flexible. You can easily make changes as per your risk taking capacity and objectives. "An investment in knowledge pays the best interest." — Benjamin Franklin Today, there are many investing strategies investors embrace. However, it takes time and efforts to understand the characteristics of each strategy. It also helps investors to improve their understanding and reduce their risk in the fluctuating market situations. Let us discuss some of the most common strategies – Value Investing– We all know that Warren Buffet is a value investor. Means, it is an ideal strategy that is good for long term investing. It involves serious study, analysis and efforts to pick the most valuable stock at the discounted prices. Value investing strategies often include different types of ratios such as P/E ratio, EPS, etc. All these are quite valuable when it comes to evaluate a stock for long-term investment. Growth Investing– According to an expert, growth investment involves evaluation a stock’s current health as well as its potential to grow. Growth investors consider the prospects of the

2. Blog1: equity99.com business and industry and then accumulate stock accordingly. They also understand the overall business plan and completion along with industry scenario. Hence, we can say that it is a profitable strategy. Momentum Investing– Momentum investors also choose the data-driven approach to trading. They study various stock related patterns to make their moves. They focus on efficient-market hypothesis in order to guide their purchasing decisions. In other words, momentum investors are technical analysts. Dollar-Cost Averaging - It is well-accepted and disciplined practice and involves making of regular investments in the market. Investors choose this strategy because it reduces risk in a significant way. "In investing, what is comfortable is rarely profitable." — Robert Arnott The world of stock market investing can be tough. Hence, if you are an investor, just figure out the best strategy as per your risk taking capacity and financial goals.