http://sgmusicwhiz.blogspot.com/ <-- If you may want to read MusicWhiz post on "Time In The Market, or Timing The Market". Quite a good debate happen there. Now, let me share my version on "Time In The Market or Timing The Market" ..
What is the primary reason to buy a stock?
. The stock is under-valued and offers good margin of safety
. The stock has incredible dividends for many years
. The stock has perfect technical entry
. blah ...
So are these really primary reason to buy a stock?
I don't think so. You buy the stock to make a reasonably high rate of return on capital (ROC) at an acceptable level of risk to you.
In simple words, the primary reason to buy a stock is to sell it.
Since I don't believe in STOP LOSS, the moment after I have bought a stock; it will spent its Time In The Market while I am Timing The Market to make a reasonably high rate of return on capital (ROC) to compensate me for taking the level of risk that is acceptable to me and I will be doing "Timing The Market" to buy the next stock. The cycle goes like this: Timing The Market ---> Time In The Market ---> Timing The Market --> Time In Then Market and so on .....
You may want to tell me your version of the story. Cheers!
New Zealand Dollar falls across the board on weaker consumer confidence
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The New Zealand Dollar weakens in its most traded pairs after weak consumer
confidence data. The New Zealand economy suffers from the twin evils of
high i...
24 minutes ago