Here Are The 5 Best Strategies To Investing In The Stock Market

Monday, October 22, 2018, 6:00 PM | Leave Comment

So you’ve done well in your life up to now. Being a forward-thinking person, you know parking all of your hard earned money in the bank is just plain foolish.

You work hard and you want your money to work just as hard, if not harder.

Because you lean towards the intelligent side of the human spectrum, you know it’s time to start investing your money wisely. And why not? Technology today makes it all so doable because nobody wants to be a sheep. Knowing what you’re doing is knowing more than most.

Here are The 5 Best Strategies To Investing In The Stock Market

  1. Buy and hold investors

    A stock for the long-term. This is a safe investment that can help you achieve significant gains in a few years. Call these type of investors closet skeptics. They don’t take chances with their money. They research a company diligently and after careful examination, they will select the most widely known companies with the strongest balance sheets.

  2. Indexing

    This type of investing involves a small lot of shares of a market index, such as the S & P 500 index or a mutual fund. Research is conducted online to give them up-to-date information in real-time. While these type of investors can move in and out of investments, they, like the Buy and Hold investors above typically hold their positions for the long-term.

  3. Value Investors

    This investor may dabble in the above two strategies, but this will be their bread and butter investment approach. Value investors are detailed. They will listen to any “hot stock tip,” and be indifferent while the excited person talks up a stock as though it was going to shoot to the moon.

    The value investor will listen quietly and later perform her due diligence. She will log in to her favorite research sites and begin to dig into a companies balance sheets and more.

    She could also refer to a dividend investing guide to help with investing. She may call the firms public relations department to get a sense of how things are fairing.

    After her research is completed, she will listen to the dumb money talk up different stocks and smile quietly — because she, after having done her research, will know the real value of the said hot stock. She’s a pro.

  4. Contrarian Investor

    This investor may be the most confident in the bunch. He will take the time to properly investigate a company before plopping down any cash to buy a stock.

    Similar to the value investor, he will check a companies books to uncover the things the company doesn’t say in the press. He checks the companies whisper numbers. He will call their PR department so much that the employees will come to know him by name. He may even contact the company’s competitors to get a feel for the overall sector in which the stock trades.

    Another pro. This investor goes it a step further by taking a position in the opposite direction, his action demonstrates that he feels his research will be better than yours. And if he’s correct, he will profit handsomely for his efforts. These are the guys you will hear about on the local stock news who won big or not.

  5. Speculator

    The speculator. Part pragmatist, part risk taker. The speculator is typically a stock trader, instead of a stock investor

    He is looking to profit from the daily (sometimes seconds/minutes/hourly) fluctuations in the stock price. It’s a heady game. But when done correctly can yield significant daily gains. Again, you shouldn’t attempt this strategy until you’ve been in the game for a while. Because you could seriously lose your shirt.

    When it comes to stock market investing, there is an art to speculation. The most important thing to know is to know what you know — and don’t know. And only allocate a small portion of your overall portfolio to this financially rewarding, but risky trading strategy. But the stock market is not the only game in town.

Other Trading Strategies:

  • Real Estate (You’ve heard it before; they “ain’t” making any more of it. Real estate investing still works for those who want something tangible to invest in.)

  • Owning Your Own Business (An alternative to doing what you know. Each one of us was born with innate skills. You could turn this into a business. You will know more than your customers. Profit from it.)

  • Trade Currencies (Did you know this market is even bigger than the stock market? It’s true. And you can trade 24-hours day. Every day.)

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