Wednesday, May 27, 2009

Currently only trading, not investing!

While trading in Suzlon no analysis was done. I happened to buy it for 83.5 at the start of market,
when prices r very volatile & sold it for 90 after some days. For last few days, it is hovering around
90 mark. So, I think it was right decison to sell it early.
I know holding a stock for long enough time pays better returns, but that is not at time like this when
economic environment is not good for growth of any company. In such scenario, trading is better than investing.
Main reason for holding the stock for long time is the benefit of compounding due to successive yrs of growth.
Right now, I can see hardly any company compounding the returns of previous year. Even equalling performance of
previous yr, is achievement in current scenario. So right now, value investing does not make sense to me.
Other thing is that I want to book profits before I get into my b-school. Because after I start going to classes,
I won't be able to trade. Getting into b-school after knowing that I have booked profits, gives a better philip rather than
sitting on the stocks for long time.
But after incurring losses today, I have become skeptical about intraday-trading. I would do short/medium term trading rather than intraday trading.

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