Stock Investing Strategies

Stock investments

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Ways Of Investing in Stocks

Buy and hold can be a powerful strategy over the long term. There are many other ways to buy and hold. Here is a list of some strategies of investing in the long term.

1. Buy ETFs

What are ETFs? Simply put they are investments which buy and hold other investments. An ETF may hold 10 stocks or 100, or more. But because they do hold other investments they are normally diverse.

The great thing about ETFs is that they are very easy to buy. You can buy it just like you buy a stock, by opening up a brokerage account typing in the symbol and clicking buy. Because each ETF is already diversified you do not have to worry about finding a large number of strong stocks, just a couple good ETFs.

2. Value Investing

Unlike the last approach which you buy an ETF and stay happy with the market average, value investing tries to find above average stocks. By using fundamental indicators such as the PE ratio to get into above average companies.

Since this strategy was introduced it has created a great track record for itself. In fact it even helped one of the richest men who ever lived get his billions. The method is simple, find solid companies and hold onto them for the long term. While it can take a bit of research the rewards can also be great.

3. Dividend Investing

One other way of investing in the stock market is by buying high dividend paying stocks. These are companies that consistently pay out a nice dividend to their shareholders. Every investor gets a percentage of the companies earnings, this makes it a very popular way of getting an extra income.

The best part about this strategy is that if you get into strong companies that are growing the dividend will also grow as time goes by.

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