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investor interchangeably (after all, the investor trades and the trader invests), but beware of this occasional context-dependent distinction.

The investment approaches of individuals are as diverse as their opinions. Your attitude is perhaps the most important factor behind your method of trading. Some of us are aggressive, some conservative, and some in between. No matter what your attitude about investing, there is a chance that there is an investment method that would suit you just right.

Growth And Income

The two most popular general investment strategies are growth and income. Conservative investors with little desire to risk their money would perhaps choose the income (value) strategy. This strategy basically consists of long-term investing in stable, well-established, and relatively secure value stocks with good fundamentals and good dividend payouts. These are stocks such as AT&T, GE, Boeing, IBM, and Alcoa. Yes, the blue chips. They have always delivered good earnings, paid good dividends, and have stood the test of time in holding their share values in thick and thin. Most income or value stocks may not grow in leaps and bounds (unlike many stocks on the scene today) or some may be out of favor for a period of time, but when times get rough, these are the kind of stocks you want to own. Many of this type of stocks pay higher than average dividends, which can be considered as a source of income.

The growth strategy, on the other hand, is more suitable for the riskoriented, short- or medium-term investor. This form of investment consists of relatively young stocks or stocks that have begun to grow rather recently. Some of these stocks may be risky, pay little or no dividends, or have little or no track record. But on the flip side, they are …