Mon. Jul 22nd, 2019

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The Applied Stock Market Investment Strategy

2 min read
Stock Marketing

The applied stock market investment strategy for each set of investment can vary. This is because each investment has its own set of factors to consider. It also has its own profit goals and loss tolerance as well as its own acceptable risks.

The Value Approach

First, you can apply fundamental analysis, which is also called the value approach and best exemplified by Warren Buffett. Basically, you find the stocks of undervalued companies based on your analysis of their quantitative and qualitative properties like expected earnings, dividends, market niches and management competency.

The stocks are priced lower than their perceived value for many reasons. It can be that the run-of-the-mill analysts have overlooked their potential or that the market is temporarily not favorable to their growth. Whatever the reason for the low stock prices, you foresee that said values will increase sooner or later.

The Technical Analysis

The second stock market investment strategy is technical analysis. To put it simply, you are using charts, graphs and other technical tools to predict the prices of stocks based on past trends, both in trading values and volumes. As you will observe, technical analysis is more suited to short-term trading activities than long-term investment plans.

Although technical analysis may not work well on its own where long-term investments are concerned, you can still use its techniques in conjunction with fundamental analysis. In this case, it is called Leeds analysis, yet another investment strategy that has served many successful investors very well.

Do You Use The Buy And Hold Market Strategy?

Finally, it is possible to use the buy-and-hold-the-market strategy. You are investing in all the 500 stocks that make up the S&P 500, which is possible . Your investment portfolio will become bigger and bigger if, and only if, you know how to handle it.

Because, If you do research you can be provided with all the tips, advice and suggestions for successful stock market investments but if you cannot apply them, you will still be left behind.

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