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I think what you're talking about lies between index funds and day trading, and it's called value investing. You buy stock in companies that you believe in for
by qmalzp 10y ago
I think what you're talking about lies between index funds and day trading, and it's called value investing. You buy stock in companies that you believe in for whatever reason (maybe you know someone really smart who works there and likes it), and hold that stock for several years.
- seanmcdirmid 10y agoActive day trading has its place in ensuring market liquidity. Without it, the market would be much less dynamic. If it serves a good role, then someone must be doing it right and making money off of it.
- IamHWengineer 10y agothe broker is making money
- katzgrau 10y agoI agree with you to an extent, but want to elaborate for anyone who may read your comment and misunderstand. Value investing does involve investing in companies you believe in, but that belief stems from research and a deep understanding of the market and intrinsic value of the company you are investing in. The more you truly know prior to investing, the better your investments will likely perform. The key is to eliminate areas of uncertainty (which may ultimately be gaps in your own knowledge).
- ac29 10y ago> it's called value investing. You buy stock in companies that you believe in for whatever reason No, value investing means you buy companies that you believe are underpriced for whatever reason [0]. Its an important distinction. [0] https://en.wikipedia.org/wiki/Value_investing https://en.wikipedia.org/wiki/Value_investing