Hey guys!👋🏻

I keep reading comments here like:

"What is your investment strategy?"

For many experienced investors it is probably clear what strategies there are and which of them they follow, but, if you are new to the subject, it is not so simple.

What strategies are there and how do I find the right one for me?

I'll try to write a post about the strategies I know, to give an overview for "beginners".

1.value investing:

This involves buying stocks of companies that are undervalued and have the potential to grow in the future. This strategy can achieve a good return, but also has the risk that the company does not have the expected success.

2. growth investing:

This involves investing in companies that have high growth potential. This strategy can quickly achieve high profits, but also has the risk that the company does not have the expected success and quickly loses value.

3. diversification:

This strategy assumes that one can minimize risk by investing in different stocks and industries. In this way, any losses from a poorly performing stock can be offset by gains from other stocks.

4. passive investing:

The strategy of passive investing, also known as index investing, assumes that market returns are positive over the long term and therefore one invests in a broadly diversified index such as the S&P500 or the DAX. The advantage of this strategy is that one has a broad diversification of investments and does not have to rely on picking individual stocks or industries correctly.

One possibility of passive investing is the use of ETFs (Exchange Traded Funds), which track an index and thus allow a broad diversification. Another option is the use of savings plans, in which a certain amount is regularly invested in an index. In this way, one can invest in the stock market even with smaller amounts and benefit from long-term market returns. However, it should be noted that even with passive investing, there is a risk that market returns will be negative over a certain period of time and that one will suffer losses.

5. satellite strategy:

Probably the most commonly used strategy here and not without reason. This involves building a core portfolio of stable and "safe" stocks or ETFs, and investing a portion of the portfolio in more speculative stocks to maximize returns.

6.Dividend Strategy:

This strategy aims to profit from corporate distributions in the form of dividends. Dividends are a type of corporate profit that is distributed to shareholders.

The dividend strategy consists of selecting stocks of companies that pay high and stable dividends on a regular basis. These stocks usually offer a good opportunity to generate a regular source of income and benefit from long-term increases in the value of the companies.

An advantage of this strategy is that dividends give you a regular source of income that is independent of stock price performance. A disadvantage may be that companies that pay high dividends may invest less in the future and therefore may have lower growth prospects. It is therefore important to analyze the companies carefully and make sure that they are healthy and stable before investing in them.

7. momentum investing:

This involves investing in stocks that have shown strong performance in recent months or quarters, with the assumption that these stocks will continue to perform well.

8. index investing:

This involves investing in a broadly diversified index, such as the S&P500 or the DAX, to capture market returns.

9. pair trading:

This involves taking simultaneous long and short positions in two correlated stocks to profit from price fluctuations between the two stocks.

10. options trading:

Options trading refers to the trading of warrants that allow the buyer to buy or sell a stock at a specified price and time. There are two types of warrants: call options and put options.

Call options: Allow the buyer to profit from rising prices of a stock by having the right to buy the stock at a specified price (strike price) at a specified time (expiration date). The buyer can then sell the stock at a higher price and make a profit.

Put options: Allow the buyer to profit from falling prices of a stock by having the right to sell the stock at a specified price (strike price) at a specified time (expiration date). The buyer can then sell the stock at a lower price, minimizing losses.

Options trading can be used as a speculative strategy, as well as a hedging strategy. However, it is important to note that trading with warrants carries a high level of risk and it is advisable to thoroughly familiarize yourself with the risks and the process of trading before you start trading.

Would greatly appreciate your feedback.