Investing is not uncommon to experience asymmetric investing, so some strategies must be applied in investing to remain profitable. With the right strategy, investing in stocks effectively doubles your income in the long run. What stock investment strategies can be considered?
Stock Investment Strategies to Consider
1. Saving shares
Saving stock is routinely investing some money in certain stocks in the long run. It is hoped that the stocks that are routinely bought will increase in the future so that they provide capital gains when they are sold.
2. Stock trading
Trading stocks means trading in shares where you carry out short-term stock trading transactions. The goal is to benefit from the difference in share price movements in the short term, starting from per 15 minutes, daily to the longest is a week.
If you are interested in implementing a stock investment strategy by trading stocks, make sure you have mastered stock technical analysis and have sufficient time to monitor market movements and stock prices.
3. Value investing
This is an investment strategy that focuses on purchasing value stocks. Stocks that are targeted are shares whose prices are still low below the fair price (undervalued) and are believed to be high in price in the long run. That way, when one time is sold, the profit is more likely to be pocketed by the investor.
4. Income Investing
This stock investment strategy focuses on buying shares from companies that routinely provide profit sharing in the form of dividends. Income investing strategies are right for those of you who expect regular income from a company’s stock ownership.
Investors who implement this strategy will tend to hold shares in the long run (buy and hold) because they are more focused on dividend income rather than chasing profits in the form of capital gains. Even so, some apply the buy and sell stance, namely buying shares of a company that wants to distribute dividends, then sell them when the dividends have been received and when the prices are higher.
5. Growth Investing
Growth investing strategies focus on finding stocks that have the potential for profit and high-income growth in the future. In contrast to value investing which emphasizes the importance of valuation of the value or fair price of shares (valuation), growth investing does not care about stock valuation. Most importantly, the stock is believed to have great growth potential.