Investment strategy refers to a set of guidelines, actions, or procedures that one follows while building an investment portfolio.
There are lots of different strategies out there, and the one that works best for you depends on your own goals, skills, and risk tolerance.
While FlexInvest cannot provide personalized recommendations on investment strategies, we can provide you with a list of some commonly used methods that can help you embark on your investment journey with confidence.
Value investing: Investors who follow the value investing strategy select stocks that seem to be priced lower than their actual intrinsic or book value.
Dollar-Cost Averaging: Investing a fixed dollar amount on a regular basis, regardless of the share price, is known as dollar-cost averaging. This practice can help you develop a disciplined investing habit, increase investment efficiency, and potentially reduce stress levels and costs.
Growth investing: Investors who adopt a growth investment strategy seek out stocks with the potential to exceed market returns. Their focus is on selecting companies that are actively expanding and have the greatest potential for long-term capital appreciation.
Momentum investing: Investing with momentum entails buying stocks, futures, ETFs, or any financial instrument that indicates rising prices and selling short the corresponding assets with declining prices.
The strategy (or strategies) you choose is one of the most important factors that will determine the performance of your investments. For this reason, it is often recommended to take time and explore your options before you take action.
Learn more about investing and investment strategies at our FlexAcademy blog.