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Sunday, April 6, 2008

Trading takeover the job

There are many ways that an investor can choose to invest. He can be a buy and hold investor or a value investor, or he can be a momentum trader or a day trader for the matter.
Sometimes choosing the kind of methods that suits your work environment is important as well. Lets just say that if your current superior allows you to do that doesn’t mean that your future superior will.
It gets even worse if you happen to be a happy go lucky trader and you work in a bank with full disclosure policy of your trades and holdings.
Some ways of investing just becomes so much of a hassle that it disrupts your productivity. I used to spend so much time looking at the numbers jumping. Thinking back to that time, I cannot imagine what I was doing back then.
The more you look at those numbers the more you are incline to force yourself into a decision that you have not carefully evaluate. A value investor or a buy and hold investor do not need to look at it that much.
I am of the opinion that if you have done your homework right, you shouldn’t be force to watch your position EVERY DAY EVERY MINUTE. Sure, you get one of those days when the company announce a bad quarter or profit guidance but hey, by the time the news release, the market would have reverted to a lower price, whether rational or irrational.
Last but not least, the best way to profit from the economy is to perform well at work, learn new things and earn a good increment. Not alot of stock market returns will measure up to that.

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