Investors will frequently read about growth stocks and growth strategies, as well as value stocks and value strategies. These terms describe reasons why people believe certain stocks will increase in value. This article gives a brief summary of the investment strategies centered upon finding those stocks. The value strategy attempts to find shares of companies
Category: Investing Strategy
Stock Investment Strategies
List of Stock Investment Strategies This article offers a brief survey of several strategies that investors use to guide their stock purchases and sales. Before we start the survey, here’s a golden rule of investing: Know why you are buying a particular stock — don’t wait until its price goes up or down to think
When to Buy/Sell Stocks
This article presents one person’s opinions on when to buy or sell stocks. Your mileage will certainly vary. Stock XYZ used to trade at 40 and it has dropped to 25. Is it a good buy? A: Maybe. Buying stocks just because they look “cheap” isn’t a good idea. All too often they look cheaper
Socially Responsible Investing (SRI)
Investors who pursue a strategy of socially responsible investing (SRI) are making sure that their capital is used in a manner that aligns with their personal ethical values–taking responsibility for what their money is doing to the world around them. There are many different definitions of what it means for an investment to be socially
Writing Put Options To Acquire Stock
Is there a stock that you would like to purchase at a cheaper price than its current quote? Would you be interested in receiving premiums months before you have to purchase the stock? If these propositions sound attractive to you, then writing puts to acquire stock is a strategy you should consider in the future.
Buying on Margin
I have used margin debt to leverage my returns several times this year, with successful results. At no time did my margin debt exceed 25% of my net account equity. This is my personal comfort level, but yours may be higher or lower depending on your risk tolerance, your portfolio return vs. the interest rate
Investment Hedging
Hedging is a way of reducing some of the risk involved in holding an investment. There are many different risks against which one can hedge and many different methods of hedging. When someone mentions hedging, think of insurance. A hedge is just a way of insuring an investment against risk. Consider a simple (perhaps the
Dollar Cost Averaging vs Value Averaging Investment Strategies
Dollar-cost averaging is a strategy in which a person invests a fixed dollar amount on a regular basis, usually monthly purchase of shares in a mutual fund. When the fund’s price declines, the investor receives slightly more shares for the fixed investment amount, and slightly fewer when the share price is up. It turns out
Dogs of the Dow
This article discusses an investment strategy commonly called “Dogs of the Dow.” The Dow Jones Industrials represent an elite club of thirty titans of industry such as Exxon, IBM, ATT, DuPont, Philip Morris, and Proctor & Gamble. From time to time, some companies are dropped from the Dow as new ones are added. By investing