Approaches to Investing

Here is a small summary of the three major approaches to investing:

1. Fundamental Analysis 

Really superior companies exist, are sometimes undervalued by markets, and can be identified by mostly financial research. Income and dividends, and stock prices can be predicted. Markets adequately All these can be identified by analysis of their financial statements. Buy where expected price is higher than the current price of a satisfactory margin.

2. Technical Analysis 

Patterns in past price behavior of a security issue and the market can be used to directly profitable trading strategies as a whole. Some technical analysts also refer to the fundamentals of a company combined with technical indicators.

3. Efficient Market Theory 

No possible market-beating investment exists. All information on the long-term performance of a share, including information not available publicly, is relevant already in the share price over a given period of observation.

And here are two more "really real" ways to invest approach: 

1. Pride Way and 

2. The Humble Way. 

Proud way is for those who believe they are smarter than everyone else and can use their knowledge and skills to make. Superior investment choices

The humble way is for those who believe that they do not know everything. This modest approach leads them to explore what works in the long term and then use it.

The way to achieve the investment success can be made. That effect, in the study of long-term results and the finding of a group of strategy or strategies
This strategy is the humble way ... And it works!

Copyright © 2005 I.E.C. Haramis

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an investment bank.