What are the best investment strategies?

If you are new to investing, it can be difficult to know where to start and how to actually make money like the stock market.

But there are some simple investment strategies that have proven to work. Below are some common investment strategies.

1. High profit

One of the best investment strategies is to invest in large, stable companies that offer “high” returns. Find companies that pay between 5-7 between return / year. Also no advantage in stock price, it can easily increase up to 10-12 / / year and in terms of risk, 12 a is a good annual return. This investment strategy is very simple but very effective, many top investors use this long term investment strategy, and finally, you can avoid a return.

We say you have 1 million savings capital, 10% return will give you 100k, if you reinvest that money you will earn 110k next year. This is called compound interest. If you continue to invest all the money you earn, you will be able to survive on the money you earn in return.

That is why rich people are only getting richer.

“It’s easy to make money if you have money”

2. Buy and hold.

This strategy is based on the fact that the stock market is always growing. Looking at the historical data, it is easy to see that the stock market has grown steadily.

Benefits: The buying and selling strategy keeps you focused on the long-term and owner-like thinking, so you avoid active trading that hurts most investors’ profits. Your success depends on how well the core business performs over time. And so you can finally find the biggest winner in the stock market and earn hundreds of times your original investment.

The beauty of this approach is that if you promise never to sell, you don’t even have to think about it again. If you never sell, you will avoid capital gains tax, the killer of returns. A long-term buy-and-hold strategy means you don’t always focus on the market – unlike traders – so you can spend all day in your favorite activities instead of being chained to watch the market.

3. Time investment.

This strategy is based on trying to buy lower and sell more, trying to predict future market price movements. Back testing shows that this type of investment has negative consequences. Or it may result in lower returns than the above investment strategies.

4. The following trend

This investment strategy is based on technical analysis and using technical indicators to know which direction the market will go. There are two types of trends, positive and negative. You can use a technical indicator called Moving Average to know the current trend. Generally, you use a moving average of 100-200 days to find out what the long term trend is. You use 20-50 days MA to know the short term trend.

5. Value investment.

The basic idea of ​​value investment is to buy stocks at a price lower than their intrinsic value. To determine the internal value of a company, you need to do a basic analysis that includes an analysis of the company’s finances and annual reports. You are then able to calculate the ratio, after which the value of the company can be determined.

Although the stock market today has seen an annual return of about 88% over the last 100 years, there are some people like Warren Buffett whose stock picks have left the market significantly behind. If you are planning to invest your money in the stock market for a few years and you want the best source for the best “value stock” recommendations, read this review of the most popular value investing newsletter More than 60% have been defeated. In the last 5 years, all investors should understand the basics of minimum value investment.

1. Income investment

One of the best ways to make money over time is to invest in income securities that usually pay off on a fixed schedule. Bonds are the most popular type of fixed income security, but this category also includes dividend-paying stocks, exchange traded funds (ETFs), mutual funds, and real estate investment trusts (REITs). Fixed income investments provide a reliable income stream with minimal risk and depending on what risk the investor wants to take, there should be at least a small part of every investment strategy.

1. Small cap investment

The investment strategy is suitable for those who want to take a little more risk in their portfolio. As the name suggests, small cap investments include buying stocks from small companies with small market capitalization (typically between $ 300 million and 2 2 billion). Small cap stocks are appealing to investors without their attention. Large cap stock prices often go up because everyone pays attention to them. Small cap stocks pay less attention to them