Archive for July 21st, 2008

Basic strategies on the market of shares

Posted on July 21st, 2008 by admin, under Forex Strategies, shares.

Basic strategies on the market of shares:

- A strategy of long-term retention of positions ( “buy and hold”) is a simple but effective strategy. It assumes acquisition of first-class shares (necessarily without using credit leverage!). Ideally requires opportunities of regular buying extra securities over a long period. Result (yield) increases substantially if producing “additions” in case of considerable (20 and over%%) declining market. Disadvantages are obvious - extra-long “jam” in positions is possible in case of an unsuccessful point of initial entrance;

- Strategy of investment “in index” - is a kind of previous strategy, with the shares acquired in accordance with their share of the common indexes (USA - Dow Jones, S&P500);

- Portfolio growth strategy – shares are purchased to the portfolio, having (from the point of view of manager) high growth potential. Advantage of this strategy is high profitability in a growing market;

- Strategy of aggressive portfolio management – strategy designed to yield additional profitableness, received because of manager’s professionalism. It is critical enough to behaviour of the market.

 

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