What are the Basic Approach of Stock Market Investing?

Want to learn about stock market investing approaches? Investing can be done through technical analysis or fundamental analysis. Once investors start investing and lost money then the real work starts where we need to find whats is not working.

Yet, people don’t stop investing because people are convinced that money could be made from the stock market. Each investor approaches the market differently and it is not mandatory if an approach is correct for one investor would be right for another investor.

So, there are multiple ways of picking stocks to invest which are generally employed by market analysts and investors, but all of the employing strategies in one way or another picking of stocks is related to two basic stock marketing investing approaches.

Basic Stock Market Buying Strategies

The two basic stock buying approaches are:

  1. Value Investing
  2. Growth Investing

These two stock trading strategies support or provide a base for other investment strategies. Let’s learn more about these in brief.

Value Investing

These types of investors usually invest in well-established companies showing steady growth and development of a firm over a long period of time, offering investors a regular dividend.

This kind of investing is recommended for investors avoiding risk, though investors in this category tend to buy the stock when they consider the price of a stock is trading at an undervalue bargain point.

Growth Investing

Growth investors are those who seek companies with a high potential for growth with the hope of realizing a maximum rise in the price of the shares. These investors are more willing to take risks by investing in relatively new companies rather than collecting dividends per share (Income per share).

Technology stocks are more favored in growth investing because of their high growth rate. Even in this Covid-19 pandemic, technology stocks have recorded a continuous rally in their prices. 

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