Friday, February 3, 2012


Good Quotes:

"It depends on each individual and the style - investor or trader. Only an individual with substantial funds may be an investor and trader at the same time, that is, allocating part of the investment funds as a long term investor on some high dividend yield stocks, as well as part of the funds for short term trading as a trader to take advantage of market swings. But it is important the traders have to know the apply the tools and techniques of short term trading, and long term investors knowing FA. For those who do not have much funds must choose to be either a long term investor with the choice of holding high dividend yield stocks, or merely trading ignoring the dividend factor. A trader with knowledge of trading tools has to let go of losing stocks or laggards even if it pays dividend. Traders have to consider all the cost of buying a stock will become a sunk cost, not to look backward on the price of purchase, but look forward to decide whether to let go for losses or taking profits, or keep to anticipate future profits. Most people who are trading on fundamentals, or in fact most retail investors not trading with TA or with a plan, would likely not able to make firm decision to let go of their stocks at a loss. August/September 2011 was a period of good example that investors do not want to let go, and even at this time of bull, the prices of the stocks they are still holding are still lower than the price they bought before Aug 2011. If they had been traders, they would have let go during August and returned during Oct/Nov 2011 with a lower price to gain back now more than what they had lost when they let go before the down swing." ~ Lee TG

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