Investment report Essay Example | Topics and Well Written Essays - 2250 words

Investment report - Essay Example Trading techniques, for example, the ‘momentum’ has enabled many traders to realize significant out performance in the investment markets. On the other hand, ‘contrarian’ technique/strategy is placed in the third place. To understand how investment strategies operate, traders need to review features of these strategies. However, in the process of applying the stated techniques, it is important to note that studies done on the foreign exchange markets indicate that their a corresponding reliance of data from various sources. When the information emerges from competing trade on investment, the most renowned is ‘market’ strategy which is closely followed by ‘momentum’ and finally ‘the contrarian’ technique. A different theory indicates that all the strategies listed above can work autonomously in investment activities. It means that there is possibility of relating an organization with a particular technique and another with a different strategy. For example, people who prefer using marketing strategies are known to understand stock market trends. In addition, they may also be perceived as better placed in the stock market activities than the competitors. Among the available strategies in the stock market, marketing strategy has existed for the longest time (Lintner, 2001). A number of researches conducted before indicate that marketing strategy has been producing excess returns in the stock market. In this project, the assumptions made on marketing strategy will only help in developing the strategy that will be applied. The difference between the three strategies is the contrarian and momentum strategies rely much on the information got after technically reviewing the nature and performance of the stock markets, while market strategy rely much on the stock market’s history. On a different scale, if an investor translates the results of his or her investment as the