Comments on: What should be your time horizon while investing in stocks?

By: Patrick J

Patrick J — Fri, 20 Nov 2009 04:03:00 +0000

Which is why I have switched over to only buying EFT’s instead of buying individual stocks. You get more coverage without worrying about taking a huge loss if the company you choose has a bad spell. The downside of EFT’s is that you will also miss out on a huge hit of buying a stock low and having the company really take off.

I think it would be great if you could do a review of how a portfolio consisting of 30% international (Europe), 30% large cap, 10 % emerging markets, 10% bonds, 10 % small cap, 10% China.

By: Patrick

Patrick — Mon, 09 Nov 2009 03:28:24 +0000

And the caveat to this post is:
… or until something happens that dictates it is time to sell. Meaning companies change for both good and bad, so there is always a chance that the reason you bought the stock no longer exists.

But in general, holding stocks for a longer period of time can be a good investment strategy – especially for dividend paying stocks.

By: Manshu

Manshu — Sat, 07 Nov 2009 02:32:59 +0000

I honestly do not believe that “trading” and “safety” are two concepts that go hand in hand. There is always risk because no one knows where the bottom is. What might look cheap today may become expensive tomorrow (when the market falls even more).

By: Aswin

Aswin — Fri, 06 Nov 2009 12:40:09 +0000

I also feel short term trading can be done safely when a company’s stock is in a all-time low and definitely we see that it is bound to increase no matter what. (say, recent case of Satyam). Lot of people buy at that time, and in a matter of few weeks, the stocks grow 100% or more and reach a level period. Sell it off that time- what say? Require your comments on this.

By: Aswin

Aswin — Fri, 06 Nov 2009 12:35:34 +0000

That was a good food for thought. I am new to stock trading and a small investor. The 3 points that were mentioned here were straight to the point and clarified my apprehensions about trading.

Stocks are not like lottery. Treat them as you would treat a fixed deposit (FD) in a bank and forget it for 5 years. Invest in a good well performing, able and growing company and definitiely you will see more money than any other investments. Do less trading and reap long term benifits.