Types of Investment Strategy

Since the nature of investing is not a sure thing in most cases, it is much like a game,
you do not know the outcome until the game has been played and a winner has been
declared. Anytime you lay almost any type of game, you have a strategy. Investing
is not any different; you need an investment strategy.

An investment strategy is basically a plan for investing your money in various types
of investments that will help you meet your financial goals in a specific amount of
time. Each type of investment contains individual investments that you must choose
from. A clothing store sells clothes � but those clothes consist of shirts, pants, dresses,
skirts, undergarments, etc. The stock market is a type of investment, but it contains
different types of stocks, which all contain different companies that you can invest in.

If you have not done your research, it can quickly become very confusing, simply
because there are so many different types of investments and individual investments
to choose from. This is where your strategy, combined with your risk tolerance and
investment style all come into play.

If you are new to investments, work closely with a financial planner before making
any investments. They will help you develop an investment strategy that will not only
fall within the bounds of your risk tolerance and your investment style, but will also
help you achieve your financial goals.

Never invest money without having a goal and a strategy for reaching that goal!
This is essential.Nobody hands their money over to anyone without knowing what
that money is being used for and when they will get it back! If you don�t have a
goal, a plan, or a strategy, that is essentially what you are doing! Always start with
a goal and a strategy for reaching that goal!

Overall, there are three different kinds of investments. These include stocks, bonds,
and cash.Sounds simple, right? Well, unfortunately, it gets very complicated from there.
You see, eachtype of investment has numerous types of investments that fall under it.

There is quite a bit to learn about each different investment type. The stock market can
be a big scary place for those who know little or nothing about investing. Fortunately,
the amount of information that you need to learn has a direct relation to the type of
investor that you are. There are also three types of investors: conservative, moderate,
and aggressive. The different types of investments also cater to the two levels of risk
tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they put their money in
interest bearing savings accounts, money market accounts, mutual funds, US Treasury
bills, and Certificates of Deposit. These are very safe investments that grow over a long
period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds, and may dabble in the stock market.
Moderate investing may be low or moderate risks. Moderate investors often also invest
in real estate, providing that it is low risk real estate.

Aggressive investors commonly do most of their investing in the stock market, which
is higher risk. They also tend to invest in business ventures as well as higher risk real
estate. For instance, if an aggressive investor puts his or her money into an older
apartment building, then invests more money renovating the property, they are running
a risk. They expect to be able to rent the apartments out for more money than the
apartments are currently worth � or to sell the entire property for a profit on their
initial investments. In some cases, this works out just fine, and in other cases, it does
not. It is a risk.

Before you start investing, it is very important that you learn about the different types
of investments, and what those investments can do for you. Understand the risks
involved, and pay attention to past trends as well. History does indeed repeat itself,
and investors know this first hand!

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To discover more about Investments and related topics Doyle invites you
to visit the following sites:  Stocks and Investing , All Business Facts
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