Letโs explore some investing strategies, from the short to long term ๐ด
Day Trading is buying & selling the same stock in one day
To legally day trade, you need to have at least $25k ๐ฑ
Itโs also very risky and not recommended for beginners ๐ฉ
You may have heard of day traders who make a lot of money very quickly, but they often lose money in the long run ๐ฒ
A 2021 report suggests that up to 80% of day traders lose money over a 1 year period ๐ฒ
Swing trading is buying and selling a stock to capture a short to medium term price change โจ
Swing traders hold onto stocks longer than day traders, but typically less than a few months ๐
Swing traders are often trying to profit off of a particular period of price movement in a stock...
but are typically not focused on the long term value of a company ๐ฐ
Value Investing = buying and holding a stock expecting that the company will increase in value in the long term
Value investors look for undervalued stocks -- stocks that may be worth more than their market price -- and then hold onto them for years, or even decades! ๐
Imagine if you invested $1000 in Apple when they first went public in 1982, and held onto your shares because you believed in Apple's long term value ๐
Well, those $1000 you invested would have turned into over $1.6 MILLION today! (as of July 2023) ๐ธ ๐ธ
Now you have a brief introduction to 3 different investment strategies! โก
Ultimately, deciding which strategies to use depends on your risk profile, and your desired returns over time