December 20th, 2014
Published on January 25th, 2013 | by Randomguru
[Stock Market] Losers and Gainers, Investing vs Trading
I just wanted to say right off the bat that I’m more of an investor these days than a trader.
During the last half of 2011 and the first half of 2012, I was more of a trader, buying and selling stocks in the span of days and weeks.
I profited because I did my homework, and researched each stock purchased and sold, catching a stock at a low trend with signs that it was going on an upswing. Most of the time I was successful, and when I wasn’t I made sure to invest incremental amounts in those stocks that seemed riskier.
The main problem with buying and selling more frequently?
Getting hit with the taxes at the end of the year!
And, I felt the importance of holding onto a stock for more than a year to avoid getting taxed heavily.
So, now I’m being very conservative, being more investor than trader.
The market has been weird lately, anyways. Even though the stock indexes have improved in a year’s time, there has been lots of volatility, mainly due to a lot of factors… the fiscal cliff, the presidential election, Europe!
So, at this point I’m sitting tight.
Most of my stocks accrue dividends anyway.
I have Exxon Mobil ($XOM) which is now the biggest corporation in the world with the biggest market cap, surpassing Apple, Inc. ($AAPL) which has been taking a nosedive lately. It’s brutal. I don’t have many shares in Apple and good thing.
Intuitive Surgical ($ISRG) has been doing phenomenally great recently because of a profiting last quarter. Where Apple stock is down 10%, Intuitive Surgical is up 10%, plus I have much more shares of Intuitive than Apple.
Another stock I’m happy with is Visa, Inc. ($V) which has consistently been outperforming its competition!
Anyway, if I haven’t been blogging much about the stock market, it’s for good reason. I’m following Warren Buffett’s philosophy and just forgetting about the stocks. If you’ve done the research and studied the fundamentals of the company, then that company’s stock should growth within 2-5 years.
Awhile back I sold McDonald’s ($MCD), Starbucks ($SBUX) and Whole Foods Market ($WFM) for good-sized profits. I don’t know if I can buy them at their current prices, but I’m still following them.
In summary, I’m being quiet and conservative, just holding onto my current investments for at least a year or more.