Investment strategy is all about your approach to stocks in particular and the market in general. Strategy is a thought process based on which you calibrate your investment ideas and actually execute the portfolio in the market. The very term basic investing strategies in the stock market can be quite diffused. There is a plethora of ways to approach the markets. When we are talking about strategies, we are talking about approaches to investing. If we were to take all the different approaches and classify them into a few broad baskets, then we can have 5 broad investing strategies that investors can adopt. Of course, no investor looks at these 5 strategies as discrete choices and there is some part of each of these strategies that investors use at different points of time.

There are different ways to create a strategy for investing in this market. More often than not, companies may qualify under more than one of these approaches. Normally what investors do is to rely on either the value approach or the growth approach to identify stocks for investing. Subsequently, the trend based approach is used to decide the timing and phasing of the entry and exit. After all, when it comes to investing, it is an eclectic approach that always works best!