If you’re new to the world of investing, the stock market can seem like a big, confusing place. Some think it’s only for rich people.

Others think it’s just like gambling. But the truth is, with a little knowledge and the right approach, anyone can start investing smartly.

Today, we’re keeping things simple. We’re talking about a few stock market strategies that beginners can actually use. No big finance words. Just real examples and easy ways to get started.

Value Investing: Buy When It’s Cheap

This is like finding your favourite sneakers on sale. You look for strong companies that are currently selling at a lower price than they’re really worth. Maybe the market overreacted to some bad news, or the stock just hasn’t caught people’s attention yet.

Let’s say a good company is usually priced at $100, but something pushes it down to $70. If the company is still solid, that lower price could be a great entry point.

This strategy is all about patience. You’re in it for the long haul, not trying to get rich overnight.

Growth Investing: Bet on the Future

Growth investing is about looking at companies that are small now but could grow fast. These are often startups or tech companies. They might not pay dividends, but if they grow quickly, your money grows with them.

Think about companies like Tesla or Zoom. Early investors made a lot because they believed in the company’s future.

This strategy does come with risk, but the rewards can be big too. It’s great for people who are okay with some ups and downs.

Article: DeFi Dev Corp’s 7-For-1 Stock Split

Momentum Investing: Go With the Flow

This one is more active. Momentum investors buy stocks that are already going up and sell them before the trend ends. The idea is that when a stock is doing well, more people will buy in, pushing it even higher.

It’s like joining a fast-moving train. You don’t have to stay on forever. You just ride the wave for a bit and hop off with your profit.

But you do need to stay alert and follow the market closely.

Dollar-Cost Averaging: Keep It Steady

This is the calmest strategy. You invest a fixed amount of money regularly. It could be weekly or monthly. Sometimes you’ll buy stocks at high prices, sometimes at low prices. Over time, it averages out.

Say you invest $100 every month. You don’t have to worry about market timing. It’s a steady way to build wealth and get used to investing.

Remember, there’s no perfect strategy. The best one is the one that fits your goals and your comfort level.

So start small. Learn as you go. And remember, smart investing is about being consistent and patient.

You can interlink the previous DeFi article here. It goes very well with Growth investing sub-point