Monday, October 5, 2009

Day-Trading Versus Long-Term Investing

Part of identifying good stocks to invest in is figuring out which of those stocks should serve as long-term investments and which of those are more volatile and shouldn‘t be considered long-term. All too often, investors become enamored with the money they are making with volatile day-trading and begin to view their long-term investments with impatience. These investors often find that they cannot cultivate the patience to watch their long-term investments start to fall and instead succumb to panic and sell their stocks prematurely. If you are this type, you may want to carefully divide your investment budget into two parts. Allot yourself a portion of your investments that you can alter frequently to satisfy that urge to react to the market, but leave the rest alone in long-term holdings

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