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Understanding Stocks

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7<br />

C H A P T E R<br />

Want to Make Money<br />

Slowly? Try These<br />

Investment Strategies<br />

As mentioned in the first chapter, a strategy is a plan that helps you<br />

determine what stocks to buy or sell. If you are new to the stock market,<br />

it’s best to keep an open mind before choosing a strategy. If a particular<br />

strategy seems to make sense to you, take the time to do more<br />

research. It can take a long time before you find an investment strategy<br />

that not only makes sense but also increases the value of your portfolio.<br />

Keep in mind that you aren’t limited to only one strategy. Some<br />

investors and traders use a variety of strategies, whereas others are<br />

comfortable using only one. No matter what strategy you use, here are<br />

a few things you should remember:<br />

1. A strategy is only as good as the person using it. In other words,<br />

no matter how brilliant and ingenious the strategy, you can still<br />

lose money.<br />

2. Not all strategies work during all market conditions.<br />

69<br />

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