What is... INVESTING?
Investing is a long-term strategy that focuses on the bigger picture.
As such, investors are not as concerned with minor price fluctuations, typically holding their positions for 3 years or more.
Out of the 4 trading styles, investing requires the least amount of time commitment from you at only around an hour a month!
If you’re patient, like in-depth analysis, and are able to look at the long-term horizon, it might be the right fit for you!
Investing
There are a few factors to take into consideration when deciding if a trading style suits you.
Does it fit your PERSONALITY?
If you’re someone who prides yourself on your ability to deal with complex situations and to make the best decisions after careful consideration, investing might be the right fit for you!
Can you commit the TIME?
Investing only takes 1 hour of your time each month to get started! You'll be using this time to determine if a company (or basket of stocks, if you're going for ETFs!) is worth investing in. After that you'll be waiting patiently for the right time and price to enter.
Are your expected RETURNS realistic for this trading style?
Stastistically, investing will help you generate around 20-25% of returns per year when you're competent and disciplined as you allow time and the fundamentals of the company to work for you. So, if your expected returns fall into this range, investing can realistically achieve it!
If you think investing is for you,
Or if investing doesn't seem like the right fit,
The REALITY of trading styles
Things to Note
Important:
Whatever trading style that you choose now is not cast in stone. In reality, most traders and investors master a few trading styles that they use simultaneously or seasonally depending on the market condition.
Therefore, there is no absolute best trading style, only the most appropriate according to your personality, time commitment, expected returns, lifestyle and also the market condition.
Understanding different trading styles and knowing when to use them is key.
