Just For Thinking ....
Sometime we really need to sit quietly and seriously think about it.
If you are an employee or self-employed having a full-time job, do you really need to trade for income and hope that one day you can quit your job and become a full-time day trader?
Full time day trading can be tough and stressful job. Read? Full Time Trading
Trading for income may require you either to have big capital or trade with leverage such as CFD and Margin to amplify your gains and to cut your losses short before they escalate to huge losses limiting your capability to come back.
Trading on leverages may be less forgiving. It may require you to have superior stock analysis skills. You may have less room for analysis errors as you need to cut losses fast and take your profits based on your quality of TA for exits.
If you can re frame your mind to switch from trading for income to trading for cash flow, you may turn yourself from a trader to an active investor. Cash flow can come from stock dividends and realized gains. You may have more room for simpler stock analysis as you may hold it longer for cash flow from stock dividends. So you may not in a hurry to cut your losses short.
You may do short-term trading and long-term investing. I am telling you it is definitely less stressful and the stock analysis is more forgiving.
Read? Uncle8888's Short-term Trading and Long-term Investing
What you think?
Posts
My comments on Xiaxue episode
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Some of my thoughts on the recent Xiaxue's name-and-shame fiasco.
First of all, I do not wish to take sides on who is right and wrong.
Because obviously it...
38 minutes ago
income investing also take a bit of skill as well i feel. the world rewards those with superior analysis and execution skills
ReplyDeleteDrizzt
Investment Moats.com
Hi,
ReplyDeleteI like to think the stock market is so complicated & enormous that all types of players(bulls & bears)can make money except the pigs. No doubts about the pigs.