Monday, June 09, 2008
Understand the basics of investing and trading online. Delve into advanced concepts and strategies that will give you an edge.

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EQUITY INVESTING STRATEGIES

EQUITY INVESTING STRATEGIES
There are various methods and strategies one can adopt while investing in equity. Some of the popular ones are enumerated below:

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Value investing
Value investing means investing in companies that are believed to be currently undervalued but whose worth will be recognized by the market eventually. These companies’ intrinsic or fundamental values
Investing in dividend yield stocks
Dividend yield is a ratio, which divides the dividend paid out by a company with the current market price.
Diversification
Diversification means spreading your money over a number of investments. In other words, you don’t concentrate your money over just one or two, or only over a few investments.
Growth investing
Growth investing means investing in companies, whose turnover and profits are expected to grow significantly, which will result in appreciation in their share prices. These companies are in a phase of
Rupee cost averaging / value averaging
To buy ‘low’ and sell ‘high’ is very difficult to do, especially in volatile markets (where prices rise and fall significantly over very short periods of time).
 
 
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