Stock Market Investing Vs. Stock Market Trading

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Being a member of the Truly Rich Club, I discovered that there are two ways of putting your money in the stock market.

First, is what I call “Stock Market Trading“.

In Stock Market Trading, one needs to be highly knowledgeable of the ins and outs and the nitty gritty of the stock market.

This entails full-time monitoring of the stocks that you are in possession of.

We can also call this kind of people as “Day Traders“.

Day trading, as defined by wikipedia, refers to the practice of buying and selling of financial instruments (one example of a financial instrument is a stock) within the same trading day.

This kind of strategy does not fit those who have their regular day jobs (like me) or those who have more important businesses to attend to.

Also, day traders have a tendency to be extremely happy when their stocks are up and extremely sad when their stocks are down.

We can, in a way, call them as “Short-term investors” because of the fact that they hold on to their stocks in the short term and trade them almost immediately.

Don’t get me wrong, I have nothing against day traders.

I actually admire them because it requires a lot of skill and experience in the stock market to do what they do.

Moving on to the other way of putting your money in the Stock Market, is what I call “Stock Market Investing“.

Stock Market Investing is all about buying great stocks and investing in them in the medium to long term.

Medium term to long term means that you hold on to your stock for more than six months to about three or five years.

What’s great about this kind of stock market strategy is that you don’t care whether your stock’s price is up or your stock’s price is down.

You just stick to buying your core stock picks every month.

Month in.

Month out.

This strategy is often referred to as Dollar-Cost Averaging (For the Filipino readers, it is called Peso-Cost Averaging)

Sorry for the technical term but essentially what you should do is to set aside money every month, let’s say PhP5,000.

You then use this PhP5,000 to buy shares of Stock A and Stock B every month.

If Stock A’s price rises this month, you get to buy less shares.

If Stock B’s price drops this month, you get to buy more shares.

Then, as you ride out the stock market’s volatility by investing in the long term, you then realize your profit by selling after a few years.

Easy as pie.

Now you’re asking, “Argel, What companies do I invest in?“

Good question!

As of this writing, me and my co-members of the Truly Rich Club are currently investing in six solid companies.

Become a member of the Truly Rich Club and know which companies we invest in. Just visit this site.

To our success in all areas of life,
Argel Tiburcio

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Argel Tiburcio

Founder and CEO at ArgelTiburcio.com

When he is not busy watching "The Office", lounging at the beach, or playing 1st person shooting games, Argel consistently invests in the stock market, both local and global. He loves learning through books, training, seminars, and workshops. He also helps Pinoys create, manage, grow, and protect their wealth as a globally-certified Professional Financial Advisor. Get in touch with him by sending an email to contact[at]argeltiburcio.com