Four strategies for investing in the shares

Four strategies for investing in the shares

There are a few basic ways to invest on the stock market, which may be of interest to the most diverse participants - from speculators to long-term investors. Every investor who purchases the shares can find for themselves the most appropriate investment strategy that meets its objectives.
1. Trading of shares "within days". This is speculation the most liquid shares, which are made in the course of the trading session. This trade is often called the "day trading" (there are more varieties of intraday trading - scalping, inertial trade, etc.). Market shares in Russia высоковолатильный - share price even in the course of one trading session may change by a few percent, which enables the traders to earn income during the used minutes or hours. In the course of the trading session can be performed from two up to several tens of transactions. As a rule, the trader sells one-three papers, since the greater the number of securities significantly complicates the execution of operations and the monitoring of the positions. At the end of the day, all positions in securities are closed, not to take the risk of a sudden jump in prices at the opening of the next day. In the trade "within days" traders actively use the borrowed funds broker - margin trading, which allows you to earn more on the growth of shares or receive income during the falling shares. The borrowed funds within the day provided to the customer free of charge.
2. Way trade. If this strategy open positions on securities are transferred for a few days. The trader can buy and hold shares up to a few days and longer, until there is a tendency of growth, or, on the contrary, sell falling shares, he took them a loan from a broker, and keep open a short position, counting on a further lowering of the value of the shares.
Both of the above strategies are suitable for those traders who are willing to spend the maximum time in computer monitors, monitor the market, develop, and test your trading system. The real yield a successful trader can be 50-100% per annum and above. For many stock trading is not a "game at the stock exchange", and daily serious work, which requires knowledge, experience and relevant skills. The skills of successful trading should be trained, as well as any other profession.
In addition to these two speculative strategies, investors are widely used strategy of the medium-term and long-term investment, which are also quite profitable in the Russian stock market.
3. Medium-term investment - the purchase of shares for a period of a few months, active portfolio management. This is one of the most popular strategies among the professional managers in the stock market. It is most suitable for those who considers, that it is best to earn in periods of strong growth, and during the fall of the market better take profits. Such periods explicit continued growth and recession happen all the time aboard the Russian stock market, and many shares synchronously rise and fall. During the year there may be several distinct periods of growth and falling market shares, therefore, for their investments need to constantly monitor and actively manage a portfolio. At movement of the market shares of the influence of different factors (both positive and negative) - development of the national economy and the financial sector, the political events, the world economy and etc. Using the medium term dynamics of market shares, a successful investor can earn not less than the short-term trader, due to the large amplitude fluctuations of the stock market.
4. Long-term investment - the purchase of shares for a period of more than a year. This strategy is called "buy and hold". An example of such a strategy can serve as an index investment, which is a passive management of the portfolio. The main thing here - the overall market growth in the long intervals of time. Investor forms a portfolio of shares, which are used for calculation of indexes of the stock market (MICEX, RTS, MICEX-10). In the index portfolio is included 7-10 securities in the same proportion as in the calculation of the index. Thus the investor creates a rather diversified portfolio of the most liquid shares and holds it for a long time, practically without changing its structure. For long-term investors are not afraid of temporary fall of individual shares - he counts on long-term growth of the stock market as a whole. Such a strategy can bring 20-40% per annum, and for the last few years, the growth of the market amounted to hundreds of percent.
Forming the investment portfolio, include from 5 to 10 shares. The distribution of the invested assets in different sectors of the economy (for example, shares of oil companies, electricity, telecoms, steel companies, etc.) allows to reduce the risks. The growth of some of the shares will be greater than the decrease in the other. Five - ten of the securities in the portfolio is optimal for the creation of a diversified portfolio is less number of securities leads to the increase of risks, and the larger number of securities complicates the management.
The portfolio can also incorporate the most promising shares of the second echelon (less traded stocks not very large, but profitable enterprises), as well as bonds.
5. Dividends. Not less common way to earn money on the stock market is to buy the shares for the sake of receiving dividends. Earlier investors are paid small attention to this article, income, since the Russian company paid few dividends or do not pay them at all, but in recent years the situation has radically changed and dividends allow you to receive the stable income, sometimes even comparable with the Bank the interest. In this case, to receive dividends, not necessarily be the owner of the shares during the whole year, only enough to hold them at the moment of closing of the register of shareholders or the so-called. . On that date the company-the Issuer is a list of its shareholders, which she will have to pay a dividend. All those who buy shares on the next day after the date of closing of the register, already do not fall in the list and dividends do not receive. The main mass on Russian issuers falls in April-may.
The most attractive for the receipt of dividends are preferred shares, as their dividend, as a rule, exceed the dividends on ordinary shares, which, combined with their lower value provides significantly greater profitability. Moreover, the constitutions of many Russian companies provides a number of advantages for the owners of ordinary shares: for example, dividends on them may not be less than a certain specified amount, either directly depend on the size of net profit; also, often, may not be less than dividends on ordinary shares, etc.
Many investors use a combination of the above strategies. For example, a trader can trade as "within days", and so endure position. Simultaneously, you can speculate share and manage long-term portfolio. To do this, you can open the broker 2-account - on-one will be your investment portfolio, with another account you will be able to make short-term operations. The use of different combinations of investment strategies allows you to flexibly manage capital in the stock market.

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