Looking For a Killer Stock Market Investment Strategy? Here Are 3 Powerful Strategies You Can Use

Are you looking for a stock market investment strategy? In this article there are 3 great strategies you can use.

Stock market investment strategy

1. Stock replacement strategy

This is a strategy that attempts to mimic the returns of a certain group of assets by using a combination of different derivatives rather than buying the individual shares in a market. Investors will attempt to profit from the leverage found in options and futures because they can give you the same kind of exposure to the underlying asset for a lower cost than if you were to buy the asset outright.

2. Scalping

This is a strategy where you attempt to make profits on small price changes. Traders who use this strategy will make anything from 10 to 100 trades during the day in the belief that small moves in price are easier to catch than large ones. The main goal Is to buy or sell a number of shares at the bid price and then quickly sell them at a few cents higher for profit. Don’t dismiss this strategy because of it’s simplicity, remember that many small profits can compound into large gains.

3. Capital growth strategy

This is an asset allocation strategy that seeks to maximize capital appreciation, or the increase in value of a portfolio over time. Portfolios that follow this strategy mainly consist of equities, the percentage of equities in the portfolio will vary according to the investors investment horizon, financial constraints and investment goals. In general a capital growth portfolio will consist of approximately 65-70% equities, 20-25% fixed income securities and the remainder in cash or money market securities. This mix seeks high returns but at the same time protects the investor against a severe loss in portfolio value.

Each of these is an excellent stock market investment strategy and if followed will give you profitable returns.

Source: PropertySeminar

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