Investment Strategy In Capital Market

1. Buy in Prime Market, Sell Once Entered in Secondary Market

This strategy is used because of investor confidence that the price will rise once a stock is listed on the stock exchange. This is based on the assumption that underwriters will not let prices fall in the first week on the secondary market. In the strategy of buying in the primary market and selling in this secondary market are many examples that can be taken. Despite the assumption that underwriters do not let prices fall in the first days in the secondary market, there is a point but in applying this strategy investors also remain guided by the stock price to be released with the price of shares of the same kind that have been recorded. This price comparison needs to be a concern because it could be lower IPO stock price than shares already recorded or vice versa. To that end, investors need to compare prices with the earnings of both shares that will be released with shares already recorded.
Although not always true, many market participants who think that the strategy of buying in the prime and selling in the secondary is suitable when applied at the time the market is bullish (stock prices in the secondary market is rising).

2. Buy and Hold Strategy

This strategy is used by investors because it believes that a company will develop over the long term, for example, a company whose products are very strategic. Generally, this strategy is also suitable for use when the price reaches the lowest point or generally the market is bearish (stock prices are very low).

3. Move Strategy

This strategy is used by investors who actively follow market development. The aim is to take advantage of the possibility of another stock price rising in the hope that the investor gets a capital gain in a short time. In the long term, this strategy aims to change the type of shares held, in the hope that other stocks are more perspective. This strategy is suitable for stocks that are actively traded on the stock exchange (liquid).

4. Reducing Loss Strategies (Cut Loss)

This strategy is used to reduce losses on stock purchases by selling previously owned shares and replacing them with other stocks (switching), another way is to buy similar stocks held previously at low prices and release them at the time the price goes up. So that loss at the time of buying high price can be reduced (cut loss).

5. Buying Sleep Shares

The strategy to buy sleeping stocks means buying inactive stocks, because usually the less-active stocks often escape the attention of the crowd, so tend to be cheaper. The patient type of financier is suitable to buy the stocks that are not active because in general, the potential benefits of such shares will appear in the long term.

6. Concentration Strategy on Industry

Investors who focus on the development of certain industries, because more know the conditions, working mechanisms of companies located in the industry, industry trends and so forth. The investment strategy in this way is to choose the best stocks in the industry.

7. Market Buying Strategy

A financier is said to be buying a market strategy, if the investor is relatively proportional to stocks on the stock exchange, for example, 50 percent of stocks listed on the stock exchange. This strategy may not be appropriate for small investors because to implement this strategy would require substantial funds.

8. Strategy to Buy Through Mutual Funds

This strategy is done by entrusting the management of funds owned by investors to an institution called mutual funds. Mutual funds will make the investment spread to achieve a certain level of profit and minimize risk.

But it does not become a benchmark or imperative of a strategy by investors, as all return to the risk level character held by investors.