Right Investment Strategy Can Make You Millions

Finding the right investment strategy can make you millions of dollars.

There are many ways and strategies that you can take to achieve your investment goals, but everyone is different, your choice can depend on your personal investment style. Make sure you have a clear investment strategy and avoid the most common investment mistakes.

One strategy that successful investors use is known as "value investing". Value investing is the selection of stocks that are traded for less than their intrinsic values. This strategy involves buying a good company share at a cheap price, such as buying low P/E ratio stocks, or low price-to-cash-flow ratio stocks. This method is based on the fact that stocks do rise over time. If you buy a stock at a very low price (undervalued stock), you are going to earn more in the future.

Another investment strategy that many traders apply is called "top down investing". This is a strategy in which the investors assess the financial market first and then the sectors, and lastly the individual securities within that sector. With this approach, the investors may take into account such factors as geography, sector and size.

* Next: How to Gain Maximum Profit in the Stock Market

Author

Kelvin Wong Loke Yuen is a highly experienced education writer. He has obtained many certifications from the UK, USA, Australia and Canada, including an MBA and a Postgraduate Diploma from Heriot-Watt (UK's World-Class University) and a BCom degree from Adelaide (Australia’s Group of Eight University). Follow him on: LinkedIn