When I discussed briefly on cognitive biasness and how it can cloud your investment decisions, I mentioned about how as Investors, we should devise a personalised investment strategy and believe in it. Even with an investment strategy, you need to also understand what is your investment style. It is like CPF LIFE where you have 3 plans (Standard, Basic, Escalating) and 3 retirement sums (FRS, BRS, ERS).
So when you say that you do growth investing, or value investing, or focus on dividends, you have to know what you are doing. Some of the common investment styles include the following:
- Time in the Market versus timing the market
- Dollar Cost Averaging versus Lump Sum investing
- Dollar Cost Averaging versus Dollar Value Averaging
- Maximum Pessimism investment strategy
- Nassim Taleb’s Barbell investment strategy
- 52-week High and Low investment strategy
- and more
Do you have a calibrated or well-defined investment strategy-cum-style?
Theory of Constraints 