Applying investment strategies in the capital market

Abstract

Article describes investment concept and provides classification, indicates investors’ types by providing generalized definition on investment. Pointing that rational decisions are hard to make for not – experienced/beginner investors. Therefore, passive and active investment strategies are described. Article covers their pros and cons. Risk and return are key elements within investment process. Following actions are must if aiming to invest successfully – define goal, evaluate situation, measure resources, define feasible alternatives. Investors’ behaviour could be justified by financial behaviour theory, which is highly recognizable these days. Moreover, it is important to notice investors’ requirements and financial capabilities. Best possible investment strategy selected for the research purposes and multi – criteria evaluation methods used (SAW, TOPSIS, VIKOR) defining most profitable investment model.