Stock Investing Strategies

Stock investments

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Ways to Invest in Stocks

Learning the basics of stock market trading can help you to understand how it works and how professionals make money consistently from it. There are a few different investment strategies out there that professionals use to make money in the market.

Here are a few different strategies of investing for the long term.

1. Buy And Hold

The first strategy is to buy a diversified market ETF and hold onto it through all it’s ups and downs. This is the easiest way to invest money in the stock market over the long term. If you take a look at the Dow Jones history you will find that in the short term stocks go up and down, but over the long term they tend to go up and that is what this strategy attempts to capture.

2. Value Investing

Value investing is the second way to invest money. This works just like buying and holding, only it attempt to find the strongest stocks instead of simply buying a diversified portfolio of random stocks. The idea here is to get into a few fundamentally strong companies whose stocks are trading far below their fair market value. By doing so they hope to profit as the market finally realizes these stocks and pushes them back up.

3. Dividend Investing

A third strategy is called dividend investing. Dividend investors will simply get a list of high dividend paying stocks and get into the strongest stocks on the list. The idea is to profit from the consistent dividends that it is paying off and if the price of the equity increases so much the better.

4. Growth Investing

Growth investors try to find stocks in companies that are not strong now, but they have a potential to be strong in the future. Basically they are looking for the next Microsoft. It is probably the riskiest way toinvest money because there is no guarantee that a company will be the next big thing, but it also does have some potential to be quite profitable.

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