Choose your Investment Strategy Carefully for Better Results

Although the market conditions might be same for all the traders and investors, yet depending on how one might manage his or her investments, different results might be obtained. There are a number of investment strategies to choose from, but it would be important to consider your individual needs to make the right choice. Your individual risk-taking ability, financial investment objectives, financial resources and a number of other factors influence the outcome of your investment.

This is precisely why you need to assess your needs and capabilities beforehand and choose an investment strategy which can bring you the best results possible. Broadly, one can opt for a defensive or aggressive investment strategy for achieving balanced growth over a period of time and quick gains in a short period of time respectively. As part of defensive investment strategy, one can develop a balanced portfolio of investment to distribute and manage risk in an efficient manner.

Diversification is the key to reducing risk in market investments and it is recommended to place stop-loss orders with an eye on risk and volatility to ensure that you minimize your losses properly. As part of aggressive investment strategy, a stock trader might choose high-risk investments with a prospect of higher gains but in the process chances of incurring losses also increases proportionately. It is imperative that someone looking to adopt an aggressive investment strategy for online stock trading to have a higher risk-taking capability.

A major part of the portfolio for an aggressive stock investor could be in equities and commodities and a small portion can be invested in government bonds whereas for a defensive investor, the bulk of investment could be made in government bonds, blue-chip stocks and other reliable options with only limited exposure to high-risk stocks. It is also important to choose a good discount brokerage to begin investing with the right investment strategy which can guide an investor properly in keeping with his or her individual needs. www.ashlaronline.com offers a number of discount brokerage plans for traders and investors to suit their individual needs and provides expert advice on how to manage your resources efficiently and can help you choose the right investment strategy.