There are a few different investment strategies the pros use to realize the best possible returns on a consistent basis, even if they don’t all follow the rules themselves. Investors who are involved in 401ks through their jobs can likely choose from various options based on their lifestyle or risk tolerance. Investment strategies also depend on the age of the investor, i.e., the younger the investor, the more likely that there is more room for risk. If the investor is older, or nearer retirement age, it is more advisable to take less risk, i.e., the investor should be a more conservative investor.

Always due your due diligence when choosing your investment professional, as well as choosing your investment strategy. Passive investment strategies are geared around minimizing the transaction costs you pay when making your investments, and Active investment strategies (think market timing) is a strategy that is aimed at maximizing your return based on shorter-term fluctuations in the market or in particular stocks and investment products.

If you’ve been around stocks for even a few minutes you’ve likely heard of ‘Buy and Hold.’ Buy and Hold is a long-term strategy, where you buy and investment for X dollar amount and hold onto the investment for years, through volatile markets and lulls, because despite all of the fluctuations, you’ll get a good return in the long run. Buy and Hold is a tried and true investment strategy, but you have to do your homework and speak to your investment professional to make sure you are buying the right investment products.

Buy Low and sell High. Everyone has heard that saying before, and it makes sense. It just doesn’t really work that well in practice. The trick here, and everywhere else in investing, is to be as informed as much as you can be, and seek the professional investment advice of the experts who do this on a daily basis. Talk to your investment professional, and ask them what their suggestions are based on your current and future financial goals. Should you buy into an index fund? Should you buy individual stocks? Bonds? These are all questions to ask your Certified Financial Planner or investment expert.