Knowledge Center

Investment Strategies

Compounding

Compounding occurs when you add your investment earnings or savings account interest to your original investment, forming a larger foundation upon which future earnings may accumulate.

Dollar Cost Averaging

Dollar cost averaging, also known as a constant dollar plan, is an investing technique that can help reduce market risk.

Hedging

Hedging helps limit risk. Even if you believe you know how an investment is going to perform, market movements are generally unpredictable. As a result, some investors hedge to help counter the instability of the markets.

Leverage

Leverage can help increase your financial power because you spend only a small portion of your own money to make an investment of much greater value.
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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.