Stock Markets Exposed

Regarding stock investing methods, do certain methods work better than others with certain amounts of money?

Will investing philosophies(value,growth,technical,etc) work differently depending on how much is invested? For example, does value work better than growth for certain levels of money - with a small amount invested, does one philosophy work better than the others? Or - is this question unsound and there are too many variables or does the answer depend entirely upon one's opinion of what works?

Public Comments

  1. yes
  2. It all depends on your risk tolerance. There are people with a lot of money that invest in safe stocks because they don't need to get rich in a hurry. But then there are people who have little money and they try safe stocks because they can't afford to lose what little they have. In the end it comes down to your personality. And unfortunately, there is no strategy that has proven hands down to be better than the others. You'll find experts arguing in favor of each philosophy.
  3. I think the best philosophy is to invest in what the best investors are buying. This is the idea behind http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends. Here are this month's best traders: http://www.top10traders.com/Top10Standings.aspx Hope this helps.
  4. Other than commision costs, theres not a reason why some strategy would work better or worse with different amounts of money invested. (within reasonable limits of course) institutional investors, for example can't do swing or day trading due to the high volumes of money they manage. What really changes is the risk tolerance you may have for small amounts of money.
  5. Yore risk tolerances should be in percentages not amounts.Average risk tolorances should start at 120. 120 - your age. 120 - 29 = 91 91% of your money should be in stocks or mutual funds at this age. because you will work for so many more years that any bad moves can be easily gotten back by retirement. The closer you get to retirement the lower your 120 becomes. 110. 100. 9% of a average 29 year old should be in cd's and money market. now the difference between value and growth are usually mutual fund names. I say the conservative you want to be go with value. The more daring growth. Unless you want to individually invest in stocks which takes hard work. Let me say with the proper learning and hard work you can beat almost any mutual fund out there.
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