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Investment strategy is the planning to invest anywhere with less risk and high reward. When we talk to invest in stock market, there is big risk to lose the investment money because there is big fluctuations in this market. No one can exact tell about when the prices will change and in what direction. So, to understand trends and making perfect probability is must in this investment strategy.

With following ways, investors can make the investment strategy for stock market.

1. Directional Investment Strategy

As per this investment strategy, investor will take the investment decisions on the basis of direction of market. If market is going upward, investors will start to buy the stock. If market will be going to down, investors will start to sell the stock. This is one of the fundamental principle to reduce risk in stock transactions.

2. Non-directional Investment Strategy

As per this investment strategy, investor will not take the investment decisions just by seeing the direction of stock market. One market, a person who invested Rs. 1,00,000  in LIC's market plus became Rs. 35000 due to decreasing the share prices. All those who followed the strategy of directional investment, are in loss of Rs. 65000. But all those who follow non-directional investment strategy, cover this loss because today is the period of boom in the stock market. It is not necessary, if the market is going down, will never rise. In this strategy,  investor tries to best to get the gain between good and bad performer stock.

3. Trading on Volatility Investment Strategy

As per this strategy, investors takes the investment decisions on the basis of future volatility. In hedge fund, this type of decisions are done through option and future trading.

4. Probability of Future Growth Investment Strategy

As per this strategy, investor calculates the the probability of future growth of the company in which he is interested to invest his money on his analyzed information. On this basis, he fix the its estimated price. If he will see good growth and there is the chance of increasing prices, he will buy its stock by ignoring the market trends. His thinking will be big and long period for gaining from his investment in stock.

Related : 3 Top Theories of Investment

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1. Investment strategies is the way of earning premium with less risk. Those who wants to invest in a market place they should have the basic knowledge of investment.

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Accounting Education: How to Create Investment Strategy in Market Volatility
How to Create Investment Strategy in Market Volatility
Accounting Education
https://www.svtuition.org/2013/11/how-to-create-investment-strategy.html
https://www.svtuition.org/
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https://www.svtuition.org/2013/11/how-to-create-investment-strategy.html
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