In one of our previous blogs, I've shared a quick note on the basic difference of the two approaches in a stock market: investing versus trading. [You can read it here. ] Its main point is that an investment is based on a long-term thesis, while a trade is any stock purchase made to profit from a short-term catalyst. If you'll notice, the key is aside from time, it's the catalyst, or the reason, of buying a stock.
Thus it added that dips in prices are just a chance to buy more of the stock in question, PROVIDED you still believe in the thesis that brought you to it in the first place. And the market we have now is something like that - providing catching-up time for those who wish to bank profits over the longer term.
But trading can always be an option, provided too that you know your catalyst.
That's why just last month, I organized a Technical Analysis seminar for those who want to have a taste of it. At least if they believe it is for them and try it, they will be equipped with some basic checkpoints in making a trade (at least the entry and exit) and understand how it works in a bigger picture.
But for many, especially those who have a dayjob, timing the market can be a difficult option. As shared by Bo in below excerpt, aiming for more gains naturally requires more from the market participant. And in the case of not meeting that more, investing using fundamental analysis may be next best area to look on.
Enjoy reading below article sharing some challenges you'll have should you want to wear your trader's hat.
***
Why You Should Never Be a Trader
Because we always have new members in the TrulyRichClub, I need to define terms here…
Investors buy stocks and don’t sell for six months to 20 years.
Traders buy stocks and sell them after a few hours or days.
Here’s another difference: Investors buy only the giants we recommend in our list . Traders buy anything, especially penny stocks, because they’re more volatile, and thus give them more opportunity to earn more money (theoretically).
Here are 3 Reasons why you should never become a trader:
1. Traders Pay More Fees.
Every time you buy and sell stocks, you pay a fee. Yes, the fees are cheap.
But still, they do add up. And that’s subtracted from your profits.
2. Traders Need More Expertise.
Some of my friends are fulltime traders. The stock market is their fulltime job. They don’t do anything else.
Guess what: A lot of them still lose money!
Despite ALL their training.
3. Traders Need More Time.
How much time a day will you spend in actively trading?
One hour? Two hours? Three hours?
Question: Why not just invest that one, or two, or three hours ON your business?
Even if you trade only one hour a day, that’s already five hours a week.
If you’re a salesman, use that one hour to call up former customers just to say “Hi” and build relationships.
If you’re an entrepreneur, use that one hour to study how to market your products through the internet.
Believe me, you’ll earn more money!
And whatever added profit you earn from your business, you can plow back to the stock market as an investor!
***
As a summary, remember to be get SET! Consider your
S - ize of money
S - ize of money
E - xpertise
T - ime.
Have fun investing (while having a life),
Omeng
PS: Learn Fundamental Analysis and know how to pick your winning stocks in a a full-blast seminar with Pesos & Sense' host Aya Laraya this coming Setyembre 28!
Learn too the money secrets and principles in how to make it work harder for you!
Best of all, you'll be able to draft your own financial plan (thus keeping you always on track)!
Get details here!
Early bird discount ends this Sept 7 na so reserve your seat now na.
Get more details and bonuses here!
PS2: Kahapon I received a short email (sharing) from a friend.
I told her I was blessed so I thought of sharing it with you na rin.
It's going with the principle that if you receive something you find helpful for free, you have a moral obligation to share it. So here it goes!
O diba, it actually made me pause, and think.. then realized.. it's a life of giving indeed that make us have a life.
PS2: Kahapon I received a short email (sharing) from a friend.
I told her I was blessed so I thought of sharing it with you na rin.
It's going with the principle that if you receive something you find helpful for free, you have a moral obligation to share it. So here it goes!
God’s afternoon!
You might want to join us in our next charity activity!
^^
If you have a dream institution you want to give to, kindly email me =)
Actually, I’m thinking of going to Aeta community kaso I don’t have contact info kasi..
So maybe we can have kiddie party na lang =)
Best of all, we have budget ^^
So all I ask of you is suggest, join and have fun!
*^^*
Ohhhh life.. I feel really old..
Grabe.. since grade school I was part of Marian Crusaders, visiting churches, then high school travelled places to become missionary..
Sumabit ako sa jeep I really thought pwede babae..
Naki-hitch rin ako after missing the “last trip” to a certain province, good thing a priest in car past by ^^
Visited prisons, joined feeding programs, numerous donation packing activities, YFC conferences and GK builds!
That worship night when the worship leaders asked us to give up everything – yes everything! Wallet ko inalay ko! Hahahah (estudyante pa ako nun)
I remember a quick chat with a nun (I wanted to be a nun before)
And she said she was rejecting my application because she wants me to go out and explore the world..
Haha!
Mukha ngang tama siya..
Yesterday during prayer time I told God I’ve lived a life of giving and I felt I really had the life..
Dunno why I felt a little tired.. or I felt over it
But I realized that maybe torn lang among so many possible options in life ^^
I’m really thankful because when I looked back, I found myself soooo happy in these times that I have served, no matter how sickly, how unwell, how problematic life was
From the bottom of my heart thank you for joining me in humble, happy causes ^^
Malay natin, we die young, we live young, we live more and more in God’s happy time
Then while surfing the net, I saw a close image of Jesus’ feet nailed on cross
Ohhh.. kulang pa.. my deeds will never be enough ^^
When I see people spending their last minutes here on earth, ALL they want to do is to give, (to love). Wala ngang discussion ng kahit anong investment e! so di pla yun ang ultimate desire ng tao.
May I always be driven by that principle.
blessed too? you know what to do. :)
PS: if you know how we can reach out sa mga kababayan nating aetas, let's help this person.:)
And if you want to join us in this charity activity, let me know, wokie?!
PS: if you know how we can reach out sa mga kababayan nating aetas, let's help this person.:)
And if you want to join us in this charity activity, let me know, wokie?!
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