In and out. Quick. Options with a safety net.
A mutual fund is like saving with your grandfather.
Most funds want the investor to take a buy and hold
approach and then buy some more.
Here is the winning mutual fund strategy:
You buy into Fund X. Once established you
buy more shares at a predetermined time.
This can be once a month, once a quarter
even once a year, lots of times but all
regimented and predetermined. Sometimes the market
will be up so you buy less, sometimes the market
will be down so you buy more. Very conservative.
But I am in favor of playing the market through individual
stocks. I believe in the quick hit.
I don’t really believe in dividends unless I buy a stock
at the right time to acquire them. I love options. they are
risky, but allow me to buy more stock at a price I can afford.
Playing and winning with individual stocks for me has
come through great information. I use the stock charts
found online, I go to stock chat sites and I always
read the news.
You can always buy individual stocks and play the holding
game, that is considered being a passive trader.
I am a fanatical trader. I can 1 or I can have 10 option
plays going at any one time.
Holding stocks is a fine strategy if you are fine with small
or gradual growth. This, too, is a conservative strategy
with more risks than mutual funds coming from the selection
of the best stock and not falling on the success of others
or a sector.
Buy and hold and mutual funds are like kissing your sister.
I believe that the market has winners (and losers) everyday.
I buy call options when I believe a company is going to take
off. I buy put options when I believe a company is heading for
a major downturn. I win with both scenarios.
I have owned mutual funds. I have also been denied owning
exclusive mutual funds.
I have owned individual stocks. I have read prospectus on
the companies I would invest in. But then I take the next
aggressive step and play those stocks as an option.
I imagine in a decade or two I may look for a more
conservative approach, but I am banking (daily) on my
my aggressive stock play now.