Simple Stock Investing Strategies for New Traders: A Beginner's Guide

There are many beginner stock investing strategies that you could potentially utilize. The stock market can be a very confusing place, and you want to start with a simple strategy when trading. Here are a few beginner stock investing strategies to consider.

Dollar Cost Averaging

Dollar cost averaging is a proven method to investing in the stock market. With this method, you will choose an individual stock and devote a certain amount of money to it on a regular interval. For example, you will invest $100 per month into the stock. When the price of the stock is low, you will be buying more shares. When the price is high, you will be buying fewer shares. This method helps to create a steady pattern of growth for you over the long term.

Dogs of the Dow

Dogs of the Dow is another simple stock investment strategy. With this strategy, you will look at the highest yielding stocks in the Dow Jones Industrial Index for the year. You will then purchase the top 10 stocks in equal proportion to one other. At the end of the year, you will look at the top 10 stocks and purchase the stocks that you do not have. This method has outperformed many professional money managers over the years and is very simple.