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INVESTMENT STRATEGIES, Every one NEEDS one

Investing strategies explained:
I am going to explain in detail a few common investing strategies that will work for most investors. By taking the time to understand my explanation of each of these strategies, you will be in a better position to decide which one of the strategy that's right for you over the long term. I take a lot of time to explain a lot of investment information, in hopes that it will help make people more informed, therefore make better investment decisions, so they can be more successful than when they started. If people are interested in the information I provide, please let me know, otherwise I may stop trying to help. Thanks.

VALUE INVESTING
Value investors are bargain shoppers. They seek stocks they believe are undervalued, with prices they don't think fully reflect the stocks' intrinsic value. I find that a lot of traders, especially new ones to the market are focused on, at least in part, on the idea that some degree of irrationality exists in the market. And so, with that mindset , traders feel that it presents opportunities to get a stock at a discounted price and will be able to make money from it.

I find that value funds specializing in large stocks returned an average of 6.7% annually. But the typical investor in those funds earned just 5.5% annually."

I can tell you why that is, Can you tell me why? Because too many short term minded traders decided to pull their money out and run especially like they recently have been doing. I explain so much information trying to get people to understand, that you must play the long game to make value investing work.

But if you are a true value investor, you don't need anyone to convince you to stay in it for the long run because this strategy is designed around the idea that you should buy businesses, not stocks.

Traders, especially new traders often try and follow people like Cathy Woods (how has that been working for you) as the queen of a value investor. You need to keep in mind, Price is what you pay. Value is what you get. When you focus on following people, you skip the most important part, the homework. I do tons of homework, sometimes for years. But when I'm ready, I go all in and I'm committed for the long run.

GROWTH INVESTING
Rather than looking for low-cost deals, growth investors want investments that offer substantial upside potential when it comes to the future earnings of stocks. (They want a 500% increase in 48 hour, or they complain saying the stock is a POS) I believe that a growth investor is often looking for the "next big thing." Growth investing, however, is not a reckless embrace of speculative investing. Instead, it involves evaluating a stock’s current health and growth potential. By doing the homework.

A growth investor considers the prospects of the industry in which the stock thrives. For example, you may consider if the future is bright for electric vehicles before investing in the sector, or if AI will become a fixture of everyday living before investing in a technology company. There must be evidence of a widespread and robust appetite for the company's services or products if it's going to grow. Investors can answer this question by looking at a company's recent history. To put it in simple terms, a growth stock should be growing. The company should have a consistent trend of strong earnings and revenue, signifying a capacity to deliver on growth expectations.

I am a growth investor, the one drawback to growth investing is a lack of dividends. If a company is in growth mode, it often needs capital to sustain its expansion, which doesn't leave much (or any) cash for dividend payments. Moreover, with faster earnings growth comes higher valuations, which are a higher risk proposition for most investors

MOMENTUM INVESTING
Momentum investors ride the wave. Momentum investing is a strategy that aims to capitalize on the continuance of existing trends in the market.

Momentum investing involves going long stocks, futures, exchange-traded funds (ETFs), or any financial instrument showing upward-trending prices and short the respective assets with downward-trending prices.

Momentum investing holds that trends can persist for some time and that it's possible to profit by staying with a trend until its conclusion, no matter how long that may be.

Momentum investing usually involves abiding by a strict set of rules based on technical indicators that dictate market entry and exit points for particular securities.

Momentum investors sometimes use two longer-term moving averages (MAs)[1], one a bit shorter than the other, for trading signals. Some use 50-day and 200-day MAs, for example. In this case, the 50-day crossing above the 200-day creates a buy signal, while a 50-day crossing back below the 200-day creates a sell signal. A few momentum investors prefer to use even longer-term MAs for signaling purposes.

DCA
Dollar-cost averaging (DCA) is the practice of making regular investments in the market over time, and is not mutually exclusive to the other strategies I've explained above. Instead, it is a means of executing whatever strategy you choose.

With DCA, you may choose to put $300 in an investment account every month. This disciplined approach becomes particularly powerful when you use automated features that invest for you. It's easy to commit to a plan when the process requires almost no oversight.

The benefit of the DCA strategy is that it avoids the painful and ill-fated strategy of market timing. Even seasoned investors occasionally feel the temptation to buy when they think prices are low only to discover, to their dismay, there is still a long way to drop. Especially like what has been currently happening.

Dollar-cost averaging is a wise choice for most investors. It keeps you committed to investing and can help reduce the risks associated with market.

When investments happen in regular increments, the investor captures prices at all levels, from high to low. These periodic investments effectively lower the average per-share cost of the purchases. Putting DCA to work means deciding on three parameters:

The total sum to be invested

The window of time where the investments will be made

The investment product you will invest in

Dollar-cost averaging (DCA) does not ensure a profit and does not protect against loss in declining markets. It involves continuous investing regardless of fluctuating price levels. Investors should consider their ability to continue investing through periods of fluctuating market conditions.

Successful investing is not winning the lottery. It is finding a proven strategy that has worked for millions of other individuals throughout history and sticking with it. The good news is that more than one strategy works; you just need to find the one that you can stick with over a lifetime and make it work for you.

The decision to choose a strategy is more important than the strategy itself. Indeed, any of these strategies can generate a significant return as long as the investor makes a choice and commits to it.

Remember, don't focus exclusively on annual returns when choosing a strategy. Engage the approach that suits your schedule and risk tolerance. Never invest what you can not afford to lose.