3 Types of Investment Procedures
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Investment Procedures
Investment Procedures are nothing but techniques, style, methods or formulae to deal with the various investment products available like Stocks, Bonds, Mutual Funds, Real Estate or Commodities.
There are mainly 3 Types of Investment Procedures which we will understand one by one, how they work?
1. Going Long: If someone were to buy any of the investment product and hold it for long, then this type of investment procedure is known as going long or buying.
This is a procedure where the investment product is bought in the expectation of rising prices in the long term where it can sell at higher prices and can gain the benefit of price appreciation.
2. Going Short: If someone were to sell an investment product and then buy it later on, then this type of investment procedure is known as going short or short selling.
This procedure is followed when the prices of investment product are expected to fall and you have shorted at a higher price in expectation of buying at a lower price when prices fall to gain the profits.
3. Trading: If someone regularly buys and sells any of the investment product in order to gain the profits from the speculative movements is known as trading or speculating.
So, these are 3 Types of Investment Procedures which are majorly followed in all types of investment products in expectation to earn profits or good Return on Investments.
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Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
