Investing strategies

Investing strategy can be understood as set of rules that guide investor in his decisions regarding investment portfolio. Investors use strategies to balance risks and rewards in accordance with his risk tolerance investing goal and investment horizon. Taking time to understand which strategy suits you the best can also help you avoid unwanted expenses.

You can look at it as existence of two extremes where on one side are investment strategies that seek rapid growth which includes greater amount or risk and on the other side is low risk strategy with regular dividends payment that is more concentrated on wealth protection. In other words there is always some kind of trade off between risk and return on investment and most investors are not in the one of those two extremes but somewhere in between. You should honestly assess your current financial situation, your expenses and debt and how much you are able to invest.

Investors using value investing seek stock that they believe are undervalued. Often what is taken into consideration is bigger picture not just temporary performance. Growth investing like the name says is focusing on the companies with growth potential that show strong and consistent earnings and revenues.

Momentum investors believe in current situation, that winning stock will remain that way. Investors select stocks based on their recent past performance using technical analysis and looking for patterns.

Dollar cost averaging can be used with already mentioned strategies. It is a strategy where you invest regularly over time and reducing risk in that way. When investing on regular basis chances are that you will capture prices of all levels and lover the average cost per share purchased.

Index investing is passive strategy where investor is trying to generate the same results like market index (SP500 for example) usually by buying ETF that tracks the underlying index.

Dividend growth investing is a strategy that involves investing in a company shares according to the future dividends forecast to be paid.

You will need to decide what is the best strategy for you, do you want to take passive or a more active approach, how much risk are you willing to take are just some of the questions you will need to answer. In the end choosing any strategy is better than having no strategy.

Comments

OTC stocks more difficult to trade and deposit

Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...

S1 Registration

A Form S1 represents the opening registration that a US firm must submit with the SEC prior to an Initial Public Offering. The Securities Act requires a registration statement, otherwise known as Securities and Exchange Commission Form S1, previous to security can be issued on a public exchange such as the NASDAQ, NYSE, or other exchanges. Foreign corporations can register with the SEC, but they must do so using the SEC Form F1. Corporations must fill out Form S1 to outline their intended use of capital proceeds, a description of their current business strategy and competition, and a brief prospectus for the new security, including offering pricing mechanism and any other dilution to other listed stocks. The SEC also mandates that any material business conducted between the corporations and its directors and external counsel be disclosed. Investors can access S1 filings online in order to do due diligence on new offers before they go public. As a result, businesses can use t...

Market Trends

When we speak about market trends that actually refers to anything that alerts the market your corporation operates in. So, there’s a good chance that different market trends are having an impact on your company’s operations simultaneously at this very moment. This imposes the following question- why would it be necessary to stay up-to-date on market trends and developments? That’s the way you evolve and remain competitive. Maybe you can’t take a race with the velocity of change connected with technology or legislation, but there is one thing you can do - take actions that can help you to expand in parallel with all those changes. So, there is no need for spending hours a week tracking trends research. It’s enough just to comprehend the diverse market trends which can help you identify what is actually appropriate for your company. This kind of in-depth research enables you to quickly adjust to dynamic market conditions and maintain your competitiveness. According to this an...

Mina Mar Group

Search This Blog