I am looking for the best and effective stock market investing strategies. I know you too are looking for a great ways to make more profits in the stock market. Many investors are looking for a good techniques to make huge profits in the stock market. I am not expert in investing, but I heard many times in the investing seminars about “value investing”. Is value investing a good strategy to make more money in the stock market? Let’s compile what’s the opinion of many investors using the comment box.
Effective Stock Market Investing Strategies
DCA or dollar cost averaging means an investor will invest money regularly (every month or every quarter). The advantage of DCA or dollar cost averaging is an investor can buy few shares if the stock price is high and can buy many shares if the stock price is low – and the average of course is “awesome”.
Imagine you are investing $100 every month within 20 years. If your $100 per month or $1,200 per year is earning 12% to 25% but the average is 17% every year, due to compound interest your one hundred dollar investment per month can turn into astonishing one hundred fifty six thousand dollars ($156,000).
Buy Company Stocks Under Different Industry
Many expert say you have to diversify your assets. If you have investment in stocks, make sure you have also invested in bonds, real estate or business ownership.
But in the stock investing alone, there is also a “diversification” strategy. You have to buy stocks not just in a single company but many stocks from different companies under different sector or industry.
Assuming you have tech stocks, pharmaceutical stocks, banking and finance stocks, etc. That way, if the tech industry isn’t doing good, you still have other stocks that may perform well.
Buy Blue Chip Stocks
Aside from diversification, make sure you buy only stocks from the top player in the industry, the giant companies, the stable companies and those companies that already reach globally. But, mind you, even though you are buying blue chip stocks, there still no guarantee that you make a profits from blue chip stocks. Blue chips are stable, but the question is “can the stock market crash anytime?” Absolutely yes!
What about you? What is your stock investing strategy? Please share it in the comment box below. Thank you for reading this article. Have a successful stock market investing journey!