To succeed in investing you need to be in to be in tune with the market as opposed to forcing your will over it. With so many different styles of investing in so many different markets it can be overwhelming for new investors to figure out how they will be able to get an edge over everyone else. Obviously the first thing to do is get familiar with some of the different investing styles and best ASX investments that are common amongst investors today. Your own personality, risk appetite, time constraints, and self-belief will all come into play when trying to determine the right investment strategy for you. While there are many variations, here three distinct styles to consider:
Top #3 Trading Strategies That You Can Use
This style resembles a “buy and hold” strategy based on a strong business moat and company fundamentals. These investors focus on retirement generally so being young or old means nothing, rather it’s the preparedness to sit on stocks for long duration that’s the common denominator. Buy and hold investors generally sell quarterly or annually for portfolio rebalancing along with selling closer to retirement. These investors also expose themselves to unlimited risk due to not using stops as they believe a stocks return should increase over a ten-year period. Thus, this style benefits those SMSF investors along with super and mutual funds.
This type of strategy involves holding for best ASX investments a few days up to a couple of months. Swing traders position themselves at the beginning of an uptrend and look to exit once the trend starts to bend. Here the investor aims to benefit from a particular stock’s momentum and sentiment. Company fundamentals and technical analysis are both important along with price action and volume. Unlike buy and hold investors, swing traders react to the market as opposed making long-term predictions. They also don’t hold strong opinions on their stocks nor spend as much time undertaking fundamentals analysis although they do spend more time on technical analysis.
The term day trading is defined as an investor who buys and sells all positions within the same day. They don’t hold anything overnight and look to profit from very short-term movements in share price. Day traders specifically focus on price action and volume with little attention paid to fundamental analysis. Unlike swing or position trading technical analysis is all that matters. Most traders take positions in phases when the market opens and closes. However, it is not vital that they are buying and selling the entire time. This investor generally does their homework about best ASX investments the night before and in pre-market.
Deciding which type of trading will suit one’s personality is difficult. Regardless of how active you want to be in the market it’s best to get in contact with a team of professionals like MF & Co. Asset Management who are monitoring stocks and client portfolio’s all day. They will give you a further break down of market dynamics along with further insight on investing presented today. Browse through their website to get an idea of what to expect!
Note: This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.