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Olugbemi. Adeyinka Ogunleye
6 days ago
Overview
5 Key Investment Strategies To Learn Before Trading
Choosing a stock market strategy that fits your portfolio objectives and skills
An investment strategy is a set of principles that guides your portfolio decisions. With seemingly countless theories and approaches on offer, from simplistic learn-this-one-trick TikToks to dense tomes seemingly only for financial doctorates, it's easy to feel overwhelmed and uncertain about where to start.
But don't worry: successful investing doesn't require a finance degree, complicated math skills, or a TikTok account. By focusing on a few key investment strategies, even beginning traders can lay a solid foundation for long-term success in the market. The truth is many successful investors use straightforward strategies that anyone can learn. These time-tested approaches help you make smarter choices about where to put your money and how to manage risk—kind of like having guardrails on a set of stairs.
Key Takeaways
Before choosing a stock market strategy, thoroughly assess your financial situation, risk tolerance, and investment goals. This self-review should be the basis of any approach you take.
Passive index investing involves putting your money into index-tracking mutual or exchange-traded funds (ETFs), offering built-in diversification and a hands-off approach.
Investors who follow growth strategies should review the executive teams of the firms they're investing in and news about the economy and relevant sectors.
Momentum investors buy stocks trending upward and short-sell them since they view them as likely to come back down to earth.
Dollar-cost averaging removes the pressure of trying to time the market perfectly. It's a disciplined approach that involves investing consistently over time, regardless of market shifts.
More: https://www.investopedia.com/investing/investing-strategies/
