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.
The Butterfly pattern is a variation of XABCD or harmonic patterns used in the graphical analysis to calculate possible retracement depth during strong trends, define reversal points attractive to enter the market, implementing the buy-dips or sell-highs trading strategies.
Shooting Star candle is one of the most widely used single candles chart setups to determine a bearish reversal. In case if an uptrend is followed by a candlestick chart with a long upper shadow and small body with a close rate near the open, the technical analysis points to a possible change in the market sentiment.
If a candlestick chart looks like a cross, or a plus sign or an inverted cross, it is called Doji. Doji means a miss or an error in Japanese and rice traders used that sign as an effective tool to predict possible saturation of the markets in terms of upside or downside potential.
➣Heiken Ashi strategy is another intriguing Japanese phrase related to candlesticks - the most widely used form of displaying price charts in the financial markets.
Cypher pattern is a XABCD formation with five touchpoints and four legs or waves between them. Each leg represents a price action, while every touchpoint highlights reversal levels.
Before entering the market, traders should understand the processes happening with the currency pair. Such pairs as EUR/USD, GBP/USD, USD/CHF and USD/JPY are suitable for the 10 pips a day strategy.
Triple Screen trading system makes use of the multiple time frame analysis because it starts first analyzing the higher time frame, i.e. weekly chart and then we need to downgrade our charts to the daily chart and so on.
Bat patterns is a type of harmonic pattern used in the graphical analysis. The formation helps forex Traders to identify the end of a counter-trend retracement, measuring its possible depth.
Forex candlestick pattern are must have for profitable forex traders arsenal of tools to use on a daily basis as they proved their efficiency throughout centuries. This article is aimed to explain the basics, show examples of profitable trading and reveal how can traders benefit from the candlestick strategy.
Profiting from the Gold Trading Strategy – crosses is not an easy work because Gold prices movement is based on not only the US Dollar fluctuation but also geopolitical developments.
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.