What Are Stock Buying Strategies?

Posted by John Smith on April 28th, 2022

There are two main types of strategies in buying stocks or ???. You can be investing both short-term and long-term.

Short-term stock purchase:

When you buy shares or ??? in the short term, you carry out what is known as Day-Trading or intraday trading. With this strategy, you speculate on the imminent change in the price of a share.

This strategy is based on the technical analysis of stocks. Technical analysis is the observation of data and graphs on the evolution of trends and prices to make predictions.

At storm.mglifestyle, we advise against this strategy for a simple reason: there are financial brokerage companies such as storm.mglifestyle that have teams of hundreds of traders performing technical analysis, using highly advanced technological tools, and investing large sums of money, which can reach billions of dollars. So that their clients beat you in their predictions and get the highest possible profit.

In this way, it is very complex to compete against this type of strategy.

Long-Term Stock Purchase:

When you buy long-term stocks you can use technical analysis, but above all, you will base your decisions on fundamental analysis.

This type of analysis evaluates the external aspects of the share price and considers whether it is a good long-term investment. With it, you will analyze in depth what is the product that the company sells, what is the sector in which it operates, and which competitors are betting against the company in question.

It is therefore interesting to focus on one sector at a time, such as technology or energy, and become aware of what is happening in each sector. In this way, you will be able to discern which company is the one that is best playing its cards in each sector.

At storm.mglifestyle, we highlight the use of fundamental analysis over technical analysis, because it is the methodology used by the most successful investors in history, including Warren Buffet and George Soros.

Buy stocks smartly using ratios like the PE ratio:

Some ratios can help guide you in the complex field of buying shares or ???. It is very important to get as much information as possible before making a trade.

We are interested in whether the stock is relatively cheap or expensive. One of the main ratios used to estimate this is the PE Ratio (Price per earnings ratio). This popular instrument lets you know how much you pay for each future dollar of earnings.