"Value investing emphasizes what already exists, and growth investing looks to the future."Before I can evaluate the efficacy of my trading strategies--I need to know my roots--I need to know my trading style. Over the years, with the onset of responsibilities as a family man, I have moved from speculative and sentiment driven trading to a focus on companies with good fundamentals, ability to pay dividends and defensive business models.
I am conservative and risk aversive by nature. If our family is planning a trip to a new place, it'll be my wife who suggests. If it's an idea to revisit a holiday destination, it'll come from me. I am the chicken and stock shrimp.
My skew towards Value Investing has not generated astounding results and I'm envious of those technical analysis based day traders who seem to get much better returns from all the market volatility.
"Investors benefit by focusing on growth when markets have fallen. Buying bonds, treasury bills and conservative debt instruments will not bring an investment portfolio back from the brink of extinction. It may preserve capital, but it won't make up for significant losses. To recover, you need to take an intelligent equity-based approach."I know of someone (60years++) whose fear has locked up all life savings in a normal POSB savings account, generating miserable interest return. The bank is laughing to itself. A failure to invest early enough in life and to manage portfolio risk profile that changes with age has paralyzed the person. Fear is the worst partner for investing. I've seen the person buy when the market is up and sell when the market is down.
If I go back in time to 2008-2009, a dream of many, I would leverage to buy stocks. The gains would be amazing. Even monkeys can trade, just pick any stock and it would have doubled or tripled in value since.
If you don't succeed at first, try and try again.
"Big shots are the little shots who keep shooting."
