I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Friday, 1 April 2011

Trading for Income or Active Investing for Wealth?

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?
Posted by Createwealth8888 at 20:02
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2 comments:

  1. Kyith4 April 2011 at 20:13:00 GMT+8

    income investing also take a bit of skill as well i feel. the world rewards those with superior analysis and execution skills

    Drizzt
    Investment Moats.com

    ReplyDelete
  2. Anonymous4 April 2011 at 22:47:00 GMT+8

    Hi,
    I 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.

    ReplyDelete

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