Just as pro tennis players don’t usually train in the same way as Olympic swimmers, the investing strategy of one investor may not be what’s best for another. Choosing out of all the possible investing strategies out there depends primarily on your goals, personality, and financial profile.

One size does not fit all.

Another good thing to keep in mind is that if an investment strategy seems too-good-to-be-true, that’s probably the case. Untested methods purported to be hot new trends are also to be treated with caution. In most cases tried-and-true investment strategies are the safest bet when it comes to getting a substantial return on your money.

Consider the following investing strategies to see what best fits you.

Fundamental Analysis

One of the most established investing styles, fundamental analysis seeks to identify quality stock by weighing financial statements. This strategy is applied primarily to the research and analysis of individual stocks rather than mutual fund selection.

Evaluations are made by comparing data from past and present financial statements in a specific company or within an industry as a whole. The investor then determines whether the purchase is viable or not by looking at the evaluation (price) of the company produced by the data analysis.

Technical Analysis

Opposite from fundamental analysis is technical analysis, in which technical traders identify recent market price trends and patterns in hopes of predicting future patterns. Patterns are often given descriptive names corresponding to their appearance in graphical data, like “cup and handle” or “head and shoulders.” The technical trader uses these indicators to make predictions about future market movements.

Given that trends and patterns take precedence over valuation techniques, crucial data, such as P/E ratio, are left out of consideration.

Growth Investing

The growth investing strategy relies heavily on a prosperous economy. As expectations of future growth steadily increase among businesses, customers, and investors, so too does their spending. In a healthy economy, growth stocks are usually at peak performance in the late stages of a market cycle. This investing style is closely related to the momentum investing strategy, which practices the idea, “buy high and sell higher,” with the expectation of continued momentum in a particular business or sector.

Value Investing

This strategy involves finding a bargain, with the investor asking essentially, “What’s on discount?” Instead of analyzing company financial statements or looking for value stocks, mutual fund investors are able to purchase ETFs, actively-managed funds holding value stocks, or index funds. Mutual fund and Exchange Traded Funds (ETFs) investors using the value investing strategy normally use value stock mutual funds.

Buy-and-Hold

The buy-and-hold investing strategy is typically more risk-averse, involving the purchase of investment securities and keeping them over long periods of time. “Time in the market over time the market” is this strategy’s motto, as investors favor the increased reliability of long-term returns over the ups and downs of shorter term buy-low/sell-high investing.

Also, having to trade less frequently reduces costs, thereby increasing the overall net return of the investment portfolio.  

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