Saturday, May 21, 2011

Money Cost Averaging or Trading? That's the Big Question !

In the most recent Daily Update of Taipan Publishing , Smart Investing Daily, it talked about the validity of the Buffet Method of Investing. That is, check the value of the company you are investing and invest on it for life consistently regardless of the trend.

Here is what Sara Nunally posted on Sat May 21 edition of Smart Investing Daily: " To Buffett, or Not to Buffett... There are many investors who look to investing guru Warren Buffett. They think if they can just copy his strategies, their portfolio might copy his gains. But his strategy might not be appropriate for you. In a sneak peek inside Jared's new book, Your Options Handbook, he talks about time horizons.
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Each investor should have a time horizon that fits their needs. Thursday's Smart Investing Daily talks about how to form a plan with a beginning, middle and end."

Above is what analyst in the US say. On the local front, Bro Bo on his latest blog about investing into Stock Market as blogged in his daily Truly Rich Club talks about an emerging strategy which combines Active Trading and Cost Averaging. This is definitely a new wave of doing your investments and I fully subscribe to this with a little modification. There are stocks you can pick which fits the money cost averaging, and there are stocks that you can choose to trade. And, more importantly, trade only the amount you can take risk. Those that have the widest variations in a day are good candidate for trading, while the consistently within the minimum and maximum resistance levels are candidates for money cost averaging.

Bottomline is, we really have to study and learn the intricacies of getting into stocks market. Better yet, we need to make sure we have a coach to lead us the right path and we make an informed an intelligent decision. If you need one, don't hesitate to contact us.

God bless!

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