Investment Strategy

An Investment Strategy defines guidelines for stock investing. Sets various investment limits, for example in Sector allocation or individual Stock weights. Most importantly, gives discipline and direction.

Investing in stocks is not a sprint. It is a journey. A Road Map is required. An Investment Strategy takes time and effort to put in place, but this piece of bureaucracy will give direction at critical points in investing in the Stock Market. An Investment Strategy for the Stock Market should start with an investor’s Investment Objectives and must be documented. The Investment Strategy can be quite simple or detailed, as long as it imposes a discipline, and the Strategy is followed. Investment Strategies range from Conservative to Aggressive Strategy. For example, a Strategy could guide Sector allocations, number of Stock positions, limits on Market Cap, and maximum weights. Plan the Strategy, then invest the Strategy.