| Are you looking for a stock market investment | | | | quickly sell them at a few cents higher for profit. |
| strategy? In this article I am going to give you 3 | | | | Don't dismiss this strategy because of it's |
| great strategies you can use. | | | | simplicity, remember that many small profits can |
| Stock market investment strategy | | | | compound into large gains. |
| 1. Stock replacement strategy - this is a strategy | | | | 3. Capital growth strategy - this is an asset |
| that attempts to mimic the returns of a certain | | | | allocation strategy that seeks to maximize capital |
| group of assets by using a combination of | | | | appreciation, or the increase in value of a portfolio |
| different derivatives rather than buying the | | | | over time. Portfolios that follow this strategy |
| individual shares in a market. Investors will | | | | mainly consist of equities, the percentage of |
| attempt to profit from the leverage found in | | | | equities in the portfolio will vary according to the |
| options and futures because they can give you | | | | investors investment horizon, financial constraints |
| the same kind of exposure to the underlying | | | | and investment goals. In general a capital growth |
| asset for a lower cost than if you were to buy | | | | portfolio will consist of approximately 65-70% |
| the asset outright. | | | | equities, 20-25% fixed income securities and the |
| 2. Scalping - this is a strategy where you attempt | | | | remainder in cash or money market securities. |
| to make profits on small price changes. Traders | | | | This mix seeks high returns but at the same time |
| who use this strategy will make anything from 10 | | | | protects the investor against a severe loss in |
| to 100 trades during the day in the belief that | | | | portfolio value. |
| small moves in price are easier to catch than | | | | Each of these is an excellent stock market |
| large ones. The main goal Is to buy or sell a | | | | investment strategy and if followed will give you |
| number of shares at the bid price and then | | | | profitable returns. |