Trading Vs. Investing

[vijenjain]

My strategy is to invest in good mutual funds for long term (60%) and for short term trading (40%) is better.

Investment in MF and trade in stock..

 

[AdaG]

Hey guys,

If you have faith in the company and its management's potential then see this fall in price as an opportunity to invest more into the company.

As far as M&M is concerned its going through a transition phase. They are expanding very aggressively into the African, western European and the US market. These markets have the biggest margins volumes and are the toughest for any new entrant (US & Europe).

So always do some research about the company and business before you investing in it. And if you do it rationally its just a matter of time your money will grow in sync with the underlying company.

AdaG.

 

[rvm123]

if u are a trader, u will be tempted to make profit and invest in some shares (which u may select thro the rumours going around). if market falls suddenly, u will be left with papers (shares of no value) only. whereas, if u are a investor, u will tend to invest in companies with good fundamentals. hence, even if market falls, in the long run, u will stand to gain. hence in the long run, investing is the best. may be in the short run, trading may fetch u. but unless u take the profit out, u will be left with junk only

 

[leo_3455]

Heard today, "During IT bubble, a stock went down from 2400 to 200; I bought it at 200 thinking it was trading at 2400, but eventually it went to Rs.1."

In Dow, General Motors hit a 33-year low yesterday.

"but unless u take the profit out, u will be left with junk only" is true for both trading and investing.

 

[rajaram.dilipkumar]

dear friends
FA never tells investors/traders when to buy or sell though it helps to some extent in stock picking.Whenever the market falls they call it PE derating and whenever the market rises they call it PE rerating. Often people use the statement " i have invested in fundamentally good companies and in the long run "as an excuse not to sell and wake up only after they see their portfolios get beaten out of shape..
Fundamentals should not be linked with market prices e.g.China has fantastic fundamentals then why is the market down from 6200 to 2700 (nearly 60%) ..Also there is an opportunity cost for everything and staying with weak stocks will block our funds , reduce our bank balance and thereby we will not be left with any money as and when we get a better opportunity in some other stock .In the mean time our confidence will be dented to such an extent that we will not believe even if a new bull market starts... Till early 2007 even i was a great follower of FA only to find out that FA never helps in trade management,risk management and position sizing. I learnt my lessons hope my friends in this thread dont learn these lessons the hard way...

 

[dkumar]

Beginners tips: Never invest huge amount in short period of spam. Watch the market and start with limited money.