Investment strategy: what do you need to know to define yours?

By Oscarjack 9 Min Read
investment strategy

Having an investment strategy that is aligned with your profile is essential to achieve positive results. From there, it will be possible to find the best alternatives for investment and define the ideal time to diversify or rebalance the portfolio.

However, establishing this method can be a complex task, especially for novice investors. After all, there are several possibilities available and each one has the potential to bring advantages and disadvantages to your portfolio.

Therefore, you must understand what needs to be taken into account to define a strategy. Want to know more? Keep reading!


An investment strategy consists of the methodology adopted by an investor for its capital allocation. It works, therefore, as a guide that guides all analyzes related to the financial market.

In this way, it assumes an extremely important role during an investment process – often being the difference between success and failure. With a strategy it is possible to select alternatives for the portfolio, outline and objectives and define deadlines.

In addition, it is the first step towards investing more safely and consciously. Thus, especially for those who prefer to expose themselves to the volatility of variable income, the strategy works to balance the risks involved.

Therefore, it is an essential part of investment planning. Without a plan, you are more susceptible to making mistakes in the evaluation of assets and products to invest and you can make decisions that are not aligned with what you actually seek for the future.


When understanding what an investment strategy is and its importance, a common question is how to prepare it. For this, it is interesting to know the main alternatives available.

Buy and hold

One of the most popular investment strategies is buy and hold. Its translation would be “buy and maintain”. Thus, the focus here is on the appreciation of assets in the long term, especially in variable income.

Typically, investors who adopt this strategy do not consider the share price so much at the time of purchase. Thus, they do not have to worry about the daily fluctuations of the stock market — since the bet is on stabilization and progressive appreciation.

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The objective is to find good investments, with potential for appreciation for the future, and maintain its position as a shareholder or quota holder, for example. One of the main elements of buy and hold is fundamental analysis. Therefore, it is based on in-depth knowledge about the investment.

Value investing

Value investing is yet another option that prioritizes the long term in variable income. However, unlike buy and hold, in this strategy the price of the asset plays a central role in the investor’s assessment.

In addition to looking for good investments, the focus is also on finding assets that are being traded for a price below what they are really worth. The investor seeks to know, for example, the companies and make future projections to understand the potential of the shares.

A variation of this strategy, made popular by Warren Buffett, is deep value investing. In this case, the objective is to analyze companies in crisis, often undergoing judicial reorganization, and find prospects for a long-term recovery.


The dividend -focused strategy is another with a long-term focus. In it, the investor’s priority is to find companies, real estate funds (FIIs) and other investment alternatives with the potential to become a source of passive income.

This is typically the first step in planning for financial independence. That is, creating a structure that allows you to maintain, or improve, your current standard of living without having to dedicate time to active work.

To make this possible, it is interesting for investors to know the financial numbers of the companies or funds in which they intend to invest. Thus, they will be able to understand if these alternatives are good dividend payers.

Speculation/short term strategies

Long-term strategies are not the only alternative. Inserted in the financial market, there are several stock exchange operators focused on the short term. They are called traders or speculators.

In this case, the focus is on making profits in trading assets and derivatives. One possibility is to buy low and sell high within a short period of time. For this, instead of fundamental analysis, the evaluation is done through technical analysis.

Traders seek to identify patterns in charts and make projections to find the best alternatives. In this context, one of the main strategies is day trading, which consists of buying and selling assets on the same trading floor.

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It is worth noting, however, that this is not necessarily an investment strategy. After all, the focus is on seeking short-term results, based on speculation.


Knowing the main strategies used by investors can help you invest better. But it is not enough just to be inspired by them, it is necessary to understand which one will be more aligned with your perspectives for the future.

Understand your risk tolerance

The first step to making your investments with more quality is to know your risk tolerance during your investments. For this, it is essential to know which type of profile you fit in: conservative, moderate or bold.

Conservatives are those who prioritize safety. Bold investors, on the other hand, seek better returns — even though they face more risk. Finally, the moderates stand between the two.

By considering your investor profile, it will be easier to identify the investment strategies that best align with your needs.

Carry out a financial plan

After understanding your profile, you must carry out a financial planning. This step will make you evaluate how your relationship with money is today and how your earnings and expenses are organized.

From this planning, you will be able to understand the amount you have available for investments today. In addition, you can set a regular amount for new contributions. With this data, evaluate the strategies that best fit your financial reality.

Set goals

Finally, it is essential to set goals and deadlines for it. That way, you’ll be able to understand the results you want to achieve and when they can happen. Then define the best strategy that can help win them over.

While defining an investment strategy may sound like a complex activity, it becomes simple once you understand its importance and the goals it can help you achieve. Soon, by knowing your profile, planning and setting goals, you will be able to implement yours.

Do you need support to make your investments? Talk to John Labunski and understand how we can help you!

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