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STRATEGIES TO INVEST IN THE STOCK MARKET

A lot of investment strategies are known, but it is necessary to clarify that none, in particular, is the ideal for everyone. Each of them presents risks as well as advantages and profitability objectives. It is up to each investor to choose the strategy that best adapts to their wishes and needs depending on multiple […]

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A lot of investment strategies are known, but it is necessary to clarify that none, in particular, is the ideal for everyone. Each of them presents risks as well as advantages and profitability objectives. It is up to each investor to choose the strategy that best adapts to their wishes and needs depending on multiple factors. Choosing just one strategy stocks can be a mistake too; you can perfectly combine several of the ones that we present to you.

First of all, you have to distinguish between investment styles and strategies investment. We could associate the investment style with the type of car and the investment strategy to the specific car model. When someone wants to buy a car you must first decide if you buy a minivan, a convertible, a saloon, etc. This would be the equivalent of choosing the investment style. If you decide that you want it is a convertible then the next step is to opt for a Mercedes slk, a Porsche boxster, a bmw z4, etc. This would be equivalent to the investment strategy. And, as with cars, it is good for each investor to personalize and adjust the chosen strategy to their needs and objectives in the same way that a specific slk engine is chosen, for example, with certain extras, colors, etc.

Some of the best-known investment styles are:

•    Value investment

•     Growth investment

•     obtaining rents

•     Momentum

•     buy market

•     Cyclical companies

•     E-structuring companies

•     Sectorial investment   

When several strategies are used, it is advisable to have an account of values for each one so that they are separated and the results of each of them can be followed and analyzed. In no case should money be transferred from the strategies that give good results to those that give bad results to cover losses?

Buy an average down

In trading, averaging downwards is like a sacrilege, when we talk about investing in the stock market, averaging downwards over a long period becomes essential.

Why do you have such a bad press averaging down?

 most investors, or unsuspecting, who buy at highs are not able to allow the market to check whether their purchase was successful or not, the desperation and lack of an investment strategy stocks make them exit the market, losing their money and the opportunity to earn a lot of money in the stock market.

Aspects to take into account when designing or choosing an investment strategy

 Simple Strategies

1.-buy a broad index at regular intervals of time

2.-buy a representative portfolio of an index at regular intervals of time

Intermediate Strategies

1.-buy a representative portfolio of an index through discretionary purchases.

2.-buy a broad index through discretionary purchases and maintain indefinitely.

3.-buy a broad index through discretionary purchases and sell at some time.

4.-form a portfolio of long-term securities with purchases at regular intervals of time.

5.-dogs of dow (dogs of the dow)

6.- buy in cracks and keep indefinitely.

7.-buy in cracks and sell in the medium term.

Elaborate Strategies

1.-form a portfolio of long-term securities through discretionary purchases.

2.-sell puts and calls systematically.

3.-purchase and sale in the medium term.

4.-buy in the medium term and sell call.

5.-invest in small companies (small caps)

6.-invest in cyclical companies

7.-invest in sectors through indexes

8.-invest in sectors through securities portfolios

Fixed Income Strategies

1.-fixed income in currencies of developed countries

2.-fixed income in emerging countries        

3.-state bonds vs. big business bonuses

4.-high profitability bonds

5.-invest in junk bonds

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