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.
Not so many trading strategies are multipurpose. ‘Range bound Market’ forex trading strategy is one of the rare techniques, allowing not only trading in sideways ranges but also using it in scalping and intraday trading.
Traders often wonder whether the current trend is going to continue and they should open more deals in the same direction, or will there be a consolidation and therefore, it would be better to use wait-and-see position.
The main target of the technical analysis is to determine entry and exit points, or levels, as well as the trend reversals. There are dozens of forex trading strategies helping traders to maximize profits on trends continuation, signalling entry levels during retracements and pullbacks.
Profitable and forex trading strategy can be built even on the most simple technical indicators such as Moving Averages. Using a combination of different types and settings for this widely used technical indicator as well as several general rules of Moving Averages’ behaviour could turn into a whole trading system which proved its profitability.
Scalp in silence forex trading strategy was designed to trade on the one-minute chart of currency pairs with the spread of 2 pips. The best choice for those conditions is EUR/USD, and it would be good if you found a broker with even less spread. The only period to trade is from 9:00 AM to 11:00 AM GMT.
Forex trading strategy Jar works in the best way for strong trends. However, that does not mean that it is impossible to get profits with this forex trading strategy from sideways ranges, as fewer entry signals appear due to additional filters. MetaTrader 5 platform is recommended for this forex trading strategy.
Forex Trading Strategy Number 4 is rather simple to use and profitable at the same time. The account balance grows better in the trend price action, however, it is hard to call this strategy as the trend system in the classic understanding of this term.
Forex trading strategy ‘CAJAPY’ has been developed by its authors for two currency pairs taking in count their special features. It has not been tested for other currency pairs, however, it is rather probable that this trading strategy could be profitable elsewhere. The pairs considered here hold the trend in a sustainable manner, and this fact allows to trade on the whole duration of the trend once it has been determined.
Honestly speaking, ‘Golden Shine’ forex trading strategy is not too original. We have already published similar strategies before but this one is especially interesting because of it works effectively in trading gold using a one-hour timeframe. It is rather tough to find a well-wring forex gold trading strategy for such an asset in this timeframe.
Ayma Forex Strategy is a forex trading strategy that is suitable mostly for by trend definition, however, its trading signals have some elements of reversal applications.
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.