Trading Vs Investing

[bwalaman]

Originally Posted by bwalaman

Just did some browsing... I have to say that Pumping, Ckens, Stockbear & co did have some solid points in September 07...

The newer folks...check it out. These guys are heavy hitters- free knowledge.

Needless to add, this is perhaps my best thread. I have accomplished 2 things: (1) Encourage people, especially the newer members to go back and read; (2) on a selfish note, keep up with all the Snr Members that have managed to rack monstrous postings...

On a more serious note, I go with MOAT (the Dangotes, Nahcos, FBN, NBs, M&B, GSM, JB- etc) or gut feeling after looking at the data...

Lets not deceive ourselves, in a sound investment, there is an element of speculation. As long as the reverse is not the case, it is an investment.

[Apache]

Originally Posted by bwalaman

I believe, strictly buy and hold "investors" have lost out over the last 2 -3 months...

I think everyone has lost about that same % both traders and buy& hold investors, unless one had cashed out earlier at a loss and did not enter the market again.
However, while buy & hold investors (of which i am one) might have lost over this period, they might/will not be running into negative territory considering the prices at which they bought initially e.g GTB N10.6, Zenith N10.9, Oceanic N9, NBC N36 etc. However, this cannot be said for Traders.
Though I acknowledge the fact of the opportunity lost by not selling at a high price, remember the saying that goes - No profit or loss is made until the stock is sold, hence the opportunity is not totally lost unlike a trader that has sold hence opportunity lost.

[invisible!]

Originally Posted by bwalaman

Needless to add, this is perhaps my best thread. I have accomplished 2 things: (1) Encourage people, especially the newer members to go back and read; (2) on a selfish note, keep up with all the Snr Members that have managed to rack monstrous postings...

On a more serious note, I go with MOAT (the Dangotes, Nahcos, FBN, NBs, M&B, GSM, JB- etc) or gut feeling after looking at the data...

Lets not deceive ourselves, in a sound investment, there is an element of speculation. As long as the reverse is not the case, it is an investment.

Home, sweet home, oh, how good it is to be home. Thanks Bwalaman for keeping the light shining all the while, this trading vs investing debate is getting more interesting with the recent twists and turns of the market. Not an easy choice if you ask me, one week up, next week down

Is this an opportunity to ride the trends or more reasons to play long and avoid the volatility as a whole? I will be back.

[emmanuel ewumi]

The thread on investing /trading is quite interesting.Traders can make money on the short run,but investors will definitely make good money on the long run.l did not say traders will make money,l said can make money on the short run.
l am more of an investing trader or a trading investor,it is the situation that determines the strategy to adopt.But do not trade and think you are investing,but you can invest and think you are trading.
l have different stock accounts for trading and investing.
lf you think trading is better for you so be it,if you think investing is better for you so be it,but l go for the combination of both strategies.

[emmanuel ewumi]

Originally Posted by Achii Kima

I made the first biggest mistake in my first years of investment. it is very painful. I bought Alumaco at 3 naira and with fear i sold it at 2 naira cos the stock experienced a free fall in price. Now alumaco is 32 naira. I think i never got the right advice. It is painful.

You do not need to regret anything in the this business,you lose some and gain some.The most important thing is to minimise your losses.
My philosophy is that when one door closes,another opens.

[emmanuel ewumi]

Originally Posted by c kenneths

It seems to me that a long term aproach to stock investing is a better way of reaping hansome rewards from the stock market.

But still there is that feeling of missing out on something if you missed out on a penny stock that just did a bull run and graduated with a 400% apreciation in six months.

What do we think of this, doing your fast trades and using the profit to buy stocks you will leave for a very long time, prefarably blue chips?

What do we think.

Very good idea,l use my trading profit,to consolidate my investment account.l have stocks which l have not sold in the last 6years,l will rather pledge them as collateral whenever opportunities arise.

[emmanuel ewumi]

With what we experienced in this market between March and July 2008.We all know the easier strategy among the two.l think investing is easier and better for the health,trading can be better if you have the skill and knowledge.But this market is no respecter of skill nor knowledge. Having a diversified streams of income,and a medium to long term projection for the market is a better option.