Every investor needs to have a goal in mind before he sets to invest in the stock market. The risk-taking capacity of the investor would change with each adopted strategy.
If the investor feels that his strategy is not meeting with his overall agenda of investment so he should go ahead and overhaul his strategic move. However, everything comes with a cost and every stock investment change has a cost attached to it. Therefore, any change in strategy has to be carefully kept in mind as it would involve money. Share market profile is a good share market training company that helps investors and their trainees to decide upon the kind of investing style based on their own unique requirements and philosophy. People ought to question their own thought process and ask basic questions like if they want to do value investing or they would like to invest in which they get a regular monthly source of income. Both the investments will be special and vary in their style of investment.
Before one goes ahead and makes any kind of investment in the market, it is only fair that a person should be able to identify with themselves and answer some basic questions.
- To know what and understand one’s financial condition.
- To collate the cost of living and the cost of debt to pay on a monthly or yearly basis.
- To understand from the current financial position what is amount of money one can invest on an ongoing basis.
- The overall goal of the investor
- For the purpose of retirement
- For the purpose of children’s education
- For the purpose of children’s marriage
- For the purpose of growth of the fund
Investing for the purpose of value
Value investing is a different ball game altogether. The master investor of all times Warren Buffet taught the world value investing and staying put in the market even though the water is turbulent and waiting till the market is more stable. If you are good at bargaining you will be able to understand value investing better. A hard bargainer is always looking for stocks that are undervalued but have great future prospects as their basics and fundamentals are strong. These kinds of shares attract a lot of attention and money from investors. A bigger picture should always be there in mind while investing in the stock market and when things do not look so good jumping out of it like a rat in the ocean is perhaps not a very sane idea. The two takeaways in this philosophy are that an investor should have a long-term perspective in investment and a strong rationale for making an investment. Future trends and economic compulsions should be kept in mind while deciding on an investment.
Investing for the purpose of growth
There are many young companies from the sunrise industries and they show and offer excellent growth prospects for their clients and investors. An investor can identify such companies in a certain sector or across sectors. The average cost of the share of these companies is affordable and the growth on the investment can be looked forward to in these companies. The only fallout with this kind of investment is that new companies which are growing fast have a high need for capital so all their profit is again rotated for investment which does not leave much room for dividends. This is certainly a disadvantage for investors. To know more about the different kinds of investment patterns and understand their advantage and disadvantage it is important that a person should understand the nuances of stock market investment by getting trained under the best share market training company. Share market profile is the best share market training in Chennai that helps investors understand their investment style.
Momentum Investing by investors
Momentum investing is another style of investment in which the investment is based on ratios and past economic trends. Usually, the stocks experiencing a bullish trend are bought and in the bearish market, the stocks are usually sold. Momentum investors usually use technical analysis tools to decode the kinds of stocks they should buy, sell or withhold. The momentum investors usually do not believe in holding their stock and building a portfolio. They tend to sell and buy at all times. In recent research, it has been seen that research and market-driven purchase have outperformed the growth and value-based approach of investment. Share market profile which is the best share market training company helps the investors to understand their financial needs and align to the stock trading strategies prevalent in the current times. To know more about our training strategy, connect to us at www.sharemarketprofile.com