Stock investment has become one of the most preferred types of investments due to its promising value and does not require a large amount of money to begin with. This is made especially so since stock investment offers a high return provided you know how to invest in the right shares. In this field of business, you are free to apply any strategy to gain maximum profit. Listed below are three strategies that can be applied while investing in stocks.
1. Taking advantage of price volatility
Swing trading is an investing strategy that promises a profitable stock. This strategy essentially involves buying stocks who’s value falls sharply by the time trading closes, and then selling them immediately when the exchange opens the next day. It must be known that swing trading is based on the assumption that a sharp price fall will be followed by a rebound during the opening of the next trading session.
2. Paying attention to the due date of dividends
The due dates of dividends could also be used as one of the strategies that can be applied in stock investment. This is done by buying the stock when its dividend due date is close by, and selling it past its due date. This strategy is effective enough to ensure a short-term profit, but you should choose the best stock available to maximize your profit.
3. Dividend payments
The last beneficial strategy is to utilize the profit from the stocks you have already purchased. It is important that you buy shares that routinely pay its dividends. After bought, let the stocks work for you by generating profit over time.
Are you interested in investing in stocks? If you are still a beginner, no need to worry. Choosing the right securities company can help you learn the right way, like Mandiri Sekuritas, a highly trusted investment bank in Indonesia, to help you in share transactions.