Story by: Karlina Armady
Published: July 25, 2018
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Karlina is a Senior Trading Advisor who has more than 5 years experience in financial trading. She also manage the famous CAT certification program Institute as school principal. She is here to inspire you with great stories and motivations.
In actual stock investment, there are many strategies used by investors. But in this article, I will explain to you the 3 most tolerant strategies widely used by investors and have been proven to be successful strategies.
1. INCOME INVESTING
Investing income is an investment strategy that focuses on the search for "income stock", that is, shares of companies that routinely distribute profits in the form of dividends. This strategy is one that aims to generate regular income from shares, while at the same time trying to minimize the risk of stock investment.
2. GROWTH INVESTING
Growth Investing is an investment strategy that focuses on the search for "growth stock", particularly stocks that are believed to have potential profits and high revenue growth in the future. This strategy concentrates on buying stocks that have the potential to grow, hence sometimes they do not pay too much attention to valuations. Even high-priced shares can be bought if they still signal future revenue growth. This strategy is believed to have a small risk because stock issuers have already made profits and have grown.
3. VALUE INVESTING
Value Investing is an investment strategy that focuses on finding "value stock". The basis of this strategy is stock valuation. Investors only buy a stock if the stock is far below its fair price (undervalued) or considered cheap.
According to some investors, this strategy has little risk because it is looking for stocks that have cheap valuations, therefore buying at lower prices. But generally, blue-chip stock values are not cheap as many investors are looking to buy however, only the second or third-tier stocks are less attractive. This increases the risk because the second or third tier stocks are sometimes difficult to predict in the future.
Whatever strategy you choose for your investment, you should equip yourself with enough knowledge in order to minis the losses and get more profits even with a small percentage. My advice is to study more intensively in order to know the tricks to make use of the strategy to get a big profit, one of which you can obtain through the 1 year CAT program, as the CAT program will accompany you and provide a lot of knowledge required to fight the market.