There are several investment strategies that can be used successful. Some people only invest in high-growth companies while some people choose to invest in companies that are in recovery. If we zoom out, some people have an active strategy while others choose to manage their investments passively.
There is no particular strategy that is right nor is there any that is particularly wrong. Not even day trading. Perhaps one strategy might be riskier than another, it however remains a strategy and can be used successfully with the right tools and resources.
I must stress that in my view, a ‘buy and hold’ strategy into a broad market portfolio (index fund) is best suited to the average individual investor.
That said, profit is a lure and the natural urge is to chase the trending investment strategy or asset class. This often results in whizzing in and out of the market and incurring transaction costs along the way. However, it almost, always turns out that once you start consistently hearing about an investment in the media, it’s already nearing its peak, all the money has been made already and initial investors are on their way out.
An investment strategy helps to guide your thoughts and actions with regards to your portfolio, it also helps you to keep your emotions in check.
Also, through use, you are able to gain valuable experience and competence.
Thus, from the go, you should lay out an investment plan with in-built structures that will ensure that you follow through is the best option to grow your investments.