Mary,
I think you have a very valid approach in holding for the long term and investing on the fundamentals. Studies have shown that, for the majority of people, more money is made this way than trying to get in and out of a stock.
There are a number of reasons for that. First, stock rises only occur a very small percentage of the time compared to doing nothing, moving sideways and oscillating back and forth. You miss these, if you are out of the stock at the wrong time and have to get back in at the higher price. Second, you significantly increase the number of right decisions you have to make and the number of wrong decisions you will make. Third, you have to pay taxes on your gains, while, your way, you continue to make money on the money you would have paid in taxes.
Your major downside is knowing when the fundamentals of a company change and when to get out. It's easy to buy, but harder to sell at the right time. Be diligent in watching for the right time to sell and don't be too greedy. A stock, many times falls faster than it rises and you can lose much of your gains before you know it.
I have developed a number of sophisticated indicators and trade technically on the chart information and the stock price and volume movements. However, I am not a purist and do take into account fundamentals and the market conditions. I am basically in IOMG for the long haul, but I will trade the movements when I can predict them and minimize my risk on the downturns. Without the tools, I wouldn't recommend it for others.
Hope you make a lot of money,
Terry H. |
