Choosing Between Growth and Value Investing

1. Choosing Between Growth and Value Investing You need to pick a strategy for stock trading. The question you need to ask is growth or value investing. Tradezero Ocean Place, Cable Beach, Unit #2, Nassau, Bahamas

2. When you get started in stock trading, you need to decide how you want to approach it. While commission free trading can encourage you to get started, you still need to develop the right strategy in line with your goals. While there are short term and long term approaches, they are essentially founded on the principles of growth investing and value investing. There are growth stocks and value stocks. Let’s take a detailed look at them: Growth Stocks Growth stocks are companies with gains that are better than average in recent years. They can keep delivering high profit growth, or at least that’s the expectation. Among these you also have emerging growth companies that are expected to grow significantly despite not having a history of it. ●Growth stocks are priced higher than the broader market. ●They are also more volatile, harboring a great deal of risk. ●Any negative rumor or bad news about the company could send its stock really down, as would earnings that fail market expectations. Value Stocks Value stocks are those with pretty good fundamentals, though they aren’t actually the darlings of the stock market. They may not be impressive in terms of astronomic growth prospects, but they are solid with a lower risk factor than growth stocks. There are also stocks that investors still need to recognize. ●Value stocks are priced lower than the broader market. ●Though they are priced low, they’d eventually rise in value when investors recognize their true value. ●Their risk level is lower than the broader market, and so long term investors would prefer them more. What to Choose Growth investors are generally after strong earnings growth. But value investors look for stocks that seem undervalued. You can include both growth and value stocks in your portfolio to have the best of both worlds. Growth ●The general tendency is for growth stocks to perform well when interest rates drop and company earnings rise. ●When the economy cools though, growth stocks would be the first to suffer. www.tradezero.co +1-954-944-3885

3. Value ●Value stocks tend to do well when the economy recovers. ●But when the bull market continues, these stocks tend to drag on. You can combine both value and growth stocks in your portfolio, particularly when you are considering long term investing. With direct market access trading offered by TradeZero, you have greater control of your trading process. www.tradezero.co +1-954-944-3885