Bullish market. Investors in capital market. This includes those who follow the trend, and those who use technical or fundamental analysis to invest.
- The fundamental investor: A fundamental investor is very concerned about accuracy in financial calculations. They can see that stock prices will rise when financial statements are positive and will buy shares if they are happy with the financial results.
- Technical investor: These investors are very focused on stock price trends and market psychology. These investors believe price and value do not have a relationship, and so they buy shares based on price trends.
- These types of investors are based upon rumors. They lack technical and fundamental knowledge and take part in selling and buying shares via friend whispers or forums. If the story is true, this investor believes price and value are in a relationship.
- Momentum investor This investor looks very similar to a technical one. This investor doesn’t see any correlation between the prices and share value by looking at price trends, strength, and value of transactions and the fact it is right for shares to be bought.
- This investor invests in companies based on their business growth. These investors believe that the company’s business prospects are what determine stock prices and stock buying factors.
- Investor speculation This is the most common type of investor in capital markets. Although it’s difficult to draw a comparison between retail and institutional investors, it does show that these types of investors can be extremely risky because they don’t often have a trading plan.
- Investor value investing is made up of several types. These investors heavily depend on intrinsic value. They believe in the Buffet approach and will examine the assets, equity and debt of the company, as well as the management and business prospects.
These are all key factors that can help you make a successful investment, especially in stocks. But, it is important to do your research.
