Long term investing, still a bad Idea?
Long term investing, still a bad Idea?
Looking back, when I started trading as a Scalper, to take profits on very short term. In few minutes or seconds. More my experience in trading growth, more I was moving on longer term investing.
And, since last few weeks, I was looking back on few of my decision, especially with bitcoin currency and others, witch I criticism often on negative way for several personal reasons.
To day, I was reading an article about, long term investing. https://winvesting.com/27-reasons-why-long-term-investing-is-a-bad-idea/
And … I start to remind my self of what I heard long time ago, what people did say on how long term investing it’s wrong and not profitable.
In some case I do agree, how ever, I think people have a confusion about investing.
There’s leathery 2 kind of long term investing.
For me, in others way, without any intention to insult any one, there’s only two way to invest on long term. Smart way and Not.
Why should any one invests on long term, whiteout having any cashflow running on regular basis to your account. (long term, more than 2 weeks for forex, and 12 months for stock market).
Since, Forex pay you daily, 2 weeks are a good time frame to look at for long term.
In stock market, due to minimum payment of 1-month period via dividend, 12 months for my sounds a good time frame.
To go back and talk about my personal experience and growth in stock market, I’m on the stage, where I only care about positive cashflow, with a minimum time frame payout of one month or less.
There’s actually five advantages for this strategy:
-You focus on one transaction at the time. Once it Run, you get your monthly and only need to monitor your investment with help of alerts.
-You create multiple source of cashflow income.
-You spend less time on trading
-Less stress
-You build a dissent portfolio with different vehicle, Forex, Stock Market, Bonds, Others. You can mix all of them, without loosing your mind.
Let’s look back on few charts, and then, see what can we do for our next move to invest in long term.
AUD/JPY
This trade I call 5 months ago. I also, mention a time to get out. How ever, I quite regret now. Looking back on this trade, I would say, this could be monitored much more professionally. And with Re-entry point to get even more with lower risk.
This why focus it is important. When you monitor one trade at the time, your mind are fresh and clear, so you can make proper decision.
Now, this trade would give you 150 days of daily payout (weekends included). For 150 pay-out, I think it make since to work your trade one at the time.
SP 500
Imagine be paid on monthly for 9 years, with appreciation on your investment.
I remember when Market strongly correct, I was looking to buy , as it did hit the bottom.
Sadly, I had no more money to invest, due my losses on 2008 correction.
I properly could with different way witch I will use for next time, but at this time I was to ignorant and new in this business.
Next Deal? 10y Bonds
Monthly chart, showing nice break out and a good momentum to enter with a low risk.
Don’t like US dollars? Don’t like US government, or Bonds.
Well…the lesson you have to learn, don’t get in love or hate with an investment. This it’s business. If it pay you, why hate? if it stop paying you, why hold? just go and get something else.
Would I keep scalp or trading short term? sure… when you know how, why not? but it would not be my priority.
If I have nothing to take right way…them swing sounds good. But like in any big long-term deal. If it’s time to put all your focus on a long term deal, you / I will only focus on it.
Have a nice week all!
KV
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