Investment strategies are approaches to invest money. Each investor has to develop own plan to make use of financial instruments in order to eventually receive a decent profit. Having a strategy allows you to make more informed and balanced trading decisions. This helps to properly build a financial portfolio, which may include cash, stocks, bonds and other securities. This section offers several choices for strategies, and each potential investor can pick the most suitable kind of strategy.
Types of investment strategies
Several behaviour lines are considered the most popular among people committed in investments.
These include the following:
- Conservative investment strategy
- It is suitable for investors who do not want to take lots of risks, want to preserve the initial investment amount and get an attractive income.
- Moderate investment strategy
- In this case, we are talking about greater risk compared to the previous option, but incomes are growing accordingly.
- Aggressive investment strategy
- The investor takes the maximum risk in the hope that he will get an exceptionally great profit.
Those approaches above describe only the general features of the lines of investment method or risk appetite. Short-term and long-term investment strategies are also related to this section. Descriptions of alternative strategies can be also found on the website.
Fibonacci trading is a strategy based on determining several levels of a retracement depth. After a strong and sustainable trend, an asset price requires re-balancing of demand/supply ratio.
Momentum Oscillator gives reliable trading signals, showing the strength of bulls or bears in current market conditions. The mathematical formula takes into account the sum of all recent gains and losses and divides it by total value of all price action for the given period.
Renko Charts is based on a completely different chart view, which aims to smooth unnecessary market noise and inform a forex trader when a significant price action happens.
Forex trading, also called foreign exchange market, is an international currency market that comprises the operations done with the floating and fixed currencies around the word.
The Force Index has a combination of three tools, working together and confirming or denying each other to show effective entry and exit signals.
Alligator indicator is a multi purpose technical instrument based on three smoothed moving averages with an additional displacement. The indicator is used in the follow-by-trend, range bound and breakthrough trading strategies depending on the market conditions.
Moving Average Convergence Divergence, short for MACD, is a famous leading indicator developed by Gerald Appel in 1979. This indicator consists of a histogram and an exponential moving average, widely applied to track the trend momentum like every other leading beacon.
➣Phantom Forex signal service uses several indicators and it allows to trade by trend and against the trend as well. ✔The only difference in the deals is in the expected profit volume.
Parabolic SAR strategy use three different technical indicators to find such a moment of too deep correction in the market in order to enter the current trend. SAR, a well-known trend indicator, is based on a calculation of the market momentum, comparing close prices in a given period.
The Aroon Indicator is a technical instrument used to measure the trend’s strength and identify the direction of the price change. The indicator consists of two lines ranging from 0 to 100.
How to choose an investment strategy?
The selection of a suitable strategy has to be carried out based on pre-set goals and targets. The wide variety of opportunities and offers in the market might scare a beginner trader. In this section, you can easily choose the tactics that will help you make sufficient profits. All aspects are accompanied by detailed descriptions, the investor can easily find out what is investing in stocks and which types of investment strategies are better to implement.