Tuesday, August 10, 2010

Day Trade or Money Cost Averaging...Which Way to Go!

Our investment climate in STOCKS An MUTUAL FUNDS is very very good compared to our neighboring countries for so many reasons favoring our country. Thus, many first time investors , and trying to be investment advisers are again on their happy ways of telling people to invest in STOCKS and MUTUAL FUNDS now.

Those who are learned, like Warren Buffet, do not wait for this moment where investment climate turns from bad to good. Real to goodness investors invest every time and anytime into STOCKS and MUTUAL FUNDS. They do not time the market as Warren advises. They invest in STOCKS and MUTUAL FUNDS using the power of "money cost averaging". This is the kind of investor I want to be and will always be. I invest in MUTUAL FUNDS and STOCKS for me and my family's future so I do not mind what is happening in the present. Regardless of trend of STOCKS and MUTUAL FUNDS I will continue to invest and in the long term, my money will earn , much much better even at its poorest performance , better than putting my money in the bank.

Another type of investor in MUTUAL FUNDS and STOCKS are those who time the market. They treat investing in MUTUAL FUNDS and STOCKS as betting in a "Lotto" game. They put in their money on a particular "bet" or stocks equity or MUTUAL FUNDS and if a certain gain is realized, they pull their money with the gains, and do the same thing all over again the following day. As per statistics, 85% of day traders end up losing their money an only 15% are successful. Sometimes, they win big time, and some days, they also lose big time. At times, even at the point of losing everything. Just like losing their money in "casinos" as day traders are likened to "stock gamblers"...

Which way do you wan to go?

It's is up to you. It is your money....

But as a matter of advise, go for Mutual Funds and Invest regularly..

God bless!

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