This guide is very long, you probably won't be able to digest this much information in one sitting. Bookmark this page so you can go straight to the index and pick up where you left off when you return. Enjoy and please tell us your success stories so we can share them on our Millionaire Maker page!
Introduction to Investing Strategies
The 10 Basic Principles of Investing
Complete Guide to Index Investing (Index Funds and ETFs)
Complete Guide to Value Investing
Investing Strategy Reviews
- Value Investing Review
- Growth Investing Review
- Income Investing Review
- Mutual Fund Investing Review
- Index Investing Review (Index Funds & ETFs)
- Momentum Investing Review
- Market Timing Review
- Day Trading & Technical Analysis Review
Our Other Guides
Strategy Review Guide
Welcome to our Investing Strategy Review Guide. We wrote this because so many beginners tell us that they are confused about what stock market investing strategy to choose, oftentimes they are even confused about what strategy they are currently implementing. This happens because most people learn about investing from their friends, coworkers, family, and whatever investing related magazines, newspapers, and Internet sites they follow. What they wind up with is a hodgepodge of random information to base their investments on rather than any cohesive strategy. The greatest danger in this is that, while most strategies work quite well on their own if implemented properly, they are usually quite disastrous when investors try to combine them together.
If you are new to investing, odds are you’re implementing a blend of several strategies rather than focusing your time and effort on just one. If you take one thing away from this guide, please let it be to choose one strategy and stick with it, don’t try several at once. As we mentioned above, when you combine strategies with different (often opposing) goals and selection criteria, you are virtually guaranteed to trail the market. Really, that bad? Yes, that bad. Over 80% of professional fund managers and investing advisors lag the S&P; 500 as it is. You have to excel to beat the indices and to excel you have to master your strategy.
Another reason many investors implement multiple strategies is that they think it will somehow decrease risk or increase returns. This is a mistake. Don’t ever be fooled into thinking combining strategies will insulate you from losses or optimize gains, only proper diversification and asset allocation can do that. Study several strategies, then pick one. Are you an aggressive investor with a long way to go until retirement? Consider becoming a Growth Investor. Do you want a low maintenance portfolio that will guarantee you the market’s return? Consider becoming an Index Investor. Are you risk averse and hoping to buy companies that are undervalued so that you can grow while limiting downside potential? Consider becoming a Value Investor. These are just a few examples, there is a great strategy for every type of investor, you will never need to combine them.
Ready to take a good hard look at the most popular strategies? Our reviews will cover the major goals, investment selection methods, strengths, weaknesses, risks, and long-term outlook for each. Very likely, you will be excited about several strategies since great investors have used them to outperform their peers and the market for decades. That is exactly why we conclude each review with a look at the investor profile best suited to each strategy. Pay particular attention to this section. You will not be able to master a strategy if it is at odds with your personality, risk tolerance, or investing goals.
Here is a list of the strategies we’re going to review. Feel free to jump around to ones that you’re interested in or read the guide straight through.
- Value Investing: “I won’t buy unless the stock is selling for less than it’s worth.”
- Growth Investing: “I’m willing to take some risks for portfolio growth.”
- Income Investing: “This money has to last a long time, I’m playing it safe.”
- Mutual Fund Investing: “I want professional expertise guiding my portfolio.”
- Index Investing (Index Funds and ETFs): “I’ll let the market do the work for me.”
- Momentum Investing: “I want to own hot stocks until they cool off.”
- Market Timing: “Ride the Bull and hide from the Bear.”
- Day Trading & Technical Analysis: “I have no fear of risk, I will take big chances for big gains.”
Let’s start with one of our two favorite investing strategies, Value Investing. We will soon have a Complete Guide to Value Investing rather than just a review, check back soon if this strategy is your favorite! We’ll teach you everything you need to know to start your Value Investing career with confidence.
Click the following link to go to the next section, the Value Investing Review.
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