Long term, mid term & short term. What kind of investor are you? Or what kind of hybrid investor are you?
Personally, I'm young & therefore I believe in long term/mid term investing, letting time work for me as long as my investments are sound & built upon a solid foundation. I don't fancy speculating or following the crowd. In my previous post, I mentioned that my dad's investing style doesn't suit me. That's because he's a short term investor that plays around with penny stocks. It's true that's probably the quickest way to make money with relatively little initial capital but it's also most likely to get your money "stuck" for quite a while unless one chooses to sell at a loss. Trading penny stocks that are high in volume are usually very volatile & follow the market's mood. Most of the time there're no sound logical reasoning behind each surge/dip in share price.
Adopting this kind of investing style will probably cause me sleepless nights and extreme mood swings in line with the market's mood. However, I sort of understand why my dad prefers this style of investing as he's almost retiring & prefers liquidity. He is uncomfortable "locking in" his money away for a substantial period of time. Hence, there are no right or wrongs. You've just got to know yourself well & adopt the investing style that best suit your risk appetite.
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