Analysts and investors use a variety of stock-picking strategies, but almost all of them are based on one of two basic stock-buying strategies: value investing or growth investing.
Value investors and the best online stock broker often invest in well-established companies that have demonstrated consistent profitability over time and may pay out regular dividends. Although value investors strive to acquire stocks when they believe the stock price is an inexpensive bargain, value investing is more focused on avoiding risk than growth investment.
Growth investors seek out firms with great growth potential in the hopes of maximising share price appreciation. They are less concerned with dividend income and are more prepared to take risks by investing in startups. Technology companies are frequently preferred by growth investors due to their great growth potential.