Investing strategies
Compare approaches through their rationale, evidence, assumptions and failure conditions.
Browse the full library →Active vs. Passive Investing
Passive investing generally seeks to follow a defined benchmark or rules-based exposure. Active investing makes decisions intended to achieve a stated objective that can differ from that benchmark. Both involve choices, costs and risks.
Strategy explained · BeginnerValue vs. Growth Investing
Value approaches emphasize price relative to measures of business value or fundamentals. Growth approaches emphasize the potential expansion of a business. These styles can overlap, and neither a low multiple nor rapid growth establishes an attractive investment by itself.
Strategy explained · IntermediateWhat Is Momentum Investing?
Momentum strategies use past performance or trends as an input to portfolio decisions. Relative momentum ranks investments against one another; trend-following rules can compare an investment with its own history. The exact rule determines what is actually being tested.
Strategy explained · BeginnerDollar-Cost Averaging
Dollar-cost averaging invests equal amounts at regular intervals. It creates a consistent contribution process and buys more units when prices are lower, but it does not guarantee a profit or the best possible entry price.
Method explained · BeginnerFundamental vs. Technical Analysis
Fundamental analysis studies the economics and financial condition behind an investment. Technical analysis studies market behavior such as price, volume and trends. They ask different questions, and neither approach removes uncertainty or guarantees an outcome.
Research method · IntermediateHow to Read a Backtest
A backtest applies a specified strategy to historical data to estimate how it would have behaved under the test’s assumptions. It is a simulation, not an actual investment record, and its credibility depends on information timing, costs and research design.