Five Different Strategies Used in Investment
Have you taken time to sit back and wonder to yourself about how people like Robert Kiyosaki and Warren Buffet ever got to where they are now? Thinking about money is not the only thing they do. You can think about cash all you want, but without the necessary actions and a practical approach, you won’t be able to accomplish anything.
The same is true in the investment world, regardless of which investment industry you enter. Chris Childs, the founder of Think Money, believes in creating substantial wealth through property investment with proven strategies. If you’ve read Kiyosaki’s Rich Dad, Poor Dad book, you’ll find that he advocates strategic investment and the effective use of your money. The goal, after all, is to make money work for you and not the other way around!
Investing is a Discipline and an Art
Deciding to invest is only one part of the equation. Applying specific techniques and taking a logical approach to investment is the next step that gets you nearer to investment success and financial independence!
Investors don’t just make decisions out of impulse or an emotional outburst. Every choice of stock, future, options, and currency pairs is a result of the careful study and implementation of an accepted technique in the industry.
If you want to achieve success in the financial market, you will need to learn these techniques. This article discusses five of these investment strategies employed by experts in the field.
A Close Look at These Investing Strategies
The Balance identifies the following strategies commonly employed in the world of investing:
Technical analysis involves the use of presentations and reports to analyze movements in the market. By using this strategy, investors attempt to identify trends in price movement to determine if there is an ideal entry point soon. The investor makes use of indicators to achieve this.
In this discipline, investors study the actual performance of the issuer of financial instruments to identify which ones to invest. When applied to stock trading, investors will read the current news, financial reports, and other similar documents about a company to see if its shares are worth investing in.
This technique is the brainchild of Mr. Buffet. This strategy is more on the side of speculation because you will not be investing in stocks that have demonstrated value. Instead, you will look for companies that you think have the potential of giving high returns in the future, but are not recognized by the experts.
As its name implies, growth investing involves putting money on companies that are already growing but still demonstrate the potential of increasing in value in the future. You could say that this is the opposite of value investing, but it requires the same methods of study to identify ideal investments.
Buy and Hold
If you have a low-risk appetite, then you should consider this investing strategy. The Buy and Hold technique is merely buying stocks or other financial instruments and letting them grow over time. Investing in a mutual fund, or a capital that has successfully shown consistent long-term growth employs this discipline.
While one technique may work exceptionally well for some investors, it may fall short for others. That is why some investment coaching programs create a personalized investment strategy that fits the investors’ needs. Think Money is one such program. Gaining a solid understanding of these investment strategies will reshape the way you invest in the future.
Always remember that investing with an eye for success is a process that takes quite some time, and some failures. Don’t be easily discouraged by bad trades, especially at the start of your investing path. Just be sure to use only the money that you are prepared to lose.