Our research suggests combining strategies can be an incredibly powerful approach that performs better than any individual strategy on its own.
Buying value, growth, dividend, and quality stocks has offered MUCH higher returns when applied in certain areas of the stock market.
The “Barbell Strategy” will allow you to invest in low-risk / low-reward stocks and high-risk / high-reward stocks at the same time.
In our last lesson, we showed that it’s possible to beat the market over the long term.
Now, let’s focus on what type of investment strategy may be the best fit for you.
In our article, “Investing Styles & Strategies: 17 Ways Investors Make Money in Stocks,” we covered 17 different investment strategies. If you haven’t read it yet, it’s definitely worth browsing to see what options are out there.
Most of the investment styles were grouped into one of two big categories: Fundamental analysis or technical analysis.
Let’s do a quick refresher on each.
Fundamental Analysis vs. Technical Analysis
Fundamental analysis uses company financial data to find stocks that will outperform the market.
On the other hand, technical analysis focuses mostly on how the stock’s price is moving (both share price and volume) to decide which stocks are the best to buy.
Remember, these are just large categories that each contain many specific investment strategies within them. For example, value investing is a classic fundamental analysis strategy.
Here’s a quick breakdown of fundamental vs. technical analysis from Steemit:
So, which is best for you?