Best place for mid-term investments?

[gambler2075]

Participants on this forum are a varied bunch at different stages of life, with different education, backgrounds and value systems. We see different solutions to financial issues, problems/ challenges presented by posters and feel safe offering suggestions to strangers with goodwill in our heart and no personal agenda

Totally agree... I guess one of the things that I feel strongly about is the attitude of non-traders when they opine about daytraders... I would agree that the vast majority of traders are losers, and that most people should not try daytrading, but I would also suggest that there are some traders that are consistently profitable, and non-traders should not be so quick to pigeonhole all traders as losers.

All I ask is that those non-traders on this forum consider that, just because their experiences with daytrading may have been damaging, not all traders are unprofitable.

g

[financebanter]

Re: Best place for mid-term investments?

Mutual fund you can give it as loan also and can earn interest till the time you can.

[ramirezhenry55]

I certainly agree that your best bet would be the mutual funds. 5-7 years is a considerable time to hold your money there and you will be earning quite well.

[gambler2075]

Hehe, this is part of the reason I joined this forum as a trader... I did it so I could start to be a bit more patient in my swing trades... Personally, when I am holding a position in a stock for more than 2 weeks I start to get antsy... and ready to deploy my money into other areas. I think what you consider an 'adequate' timeframe depends on what you are buying. For alot of biotech stocks, 1 year is an eternity and I would consider 'long term' to be between 1 month and 3 months.

The other thing I like to point out to my investing friends is that, if your timeframe is on the order of 'years' then there is really no way for you to develop a large enough sample size of trades/investments to know that your investing strategy is a winning one. You would be dead before you accumulated that sample size

However, as a trader, if you hold stocks for, say, 2 weeks or less, and you have made thousands of trades, then you definitely have a large enough sample size to know if you have a winning strategy.

g

The other big, big advantage imo, in trading short term, is that you don't really care about the broader markets. Personally, I believe the markets are quite overbought at this point, and we will have a decent pullback, maybe not a double dip, but down, say, 10% in the S&P 500. I do think this Sep 1 rally was a sucker rally. Yeah, maybe we go up a little bit, but eventually I think we go back down.

Well, back to my point: When you trade short term, like days to weeks, then over that timeframe, whatever catalyst you are trading is much more powerful than the overall market trend. For example, if you are trading FDA phase 3 decisions (i.e. buying well before, and selling just before the decision) then that greed and price movement will happen regardless of the overall market. You could be in a bull, bear, or flat market, and that short maybe 2-4 week movement will still overpower the overall market movement. Nothing is guaranteed in the markets, and while people can say they made huge profits since buying in March '09, they haven't made anything until they sell. Plus, things can change. People bought SQNM thinking it was a guaranteed thing, and then it got crushed by a black swan event (the data mishandling event). Essentially, nothing is guaranteed and even though you have unrealized profits now, that doesn't mean they will be there tomorrow. There has to be a balance between taking profits and missing potential profits.

Anyway, enough for my long-winded post. Just a couple of educational resources in case people are interested in becoming traders

Chart Addict is one of my favorites, he trades breakouts and charts (duh! ) but his philosophy is similar to mine.
Archive of Educational Materials | Technical Analysis | Chart Addict

Jesse Livermore: The boy plunger has a trading philosophy similar to mine, and his biography is fascinating.

http://www.trading-naked.com/library/jesse_livermore.pdf

My philosophy is also shaped by Taleb with his Black Swan books... and that is nothing is guaranteed in the markets... any trading position you take must balance the risk and reward, and I believe most people underestimate the risks of a black swan. Which is another reason not to hold long-term positions.

g

[James00]

Many places where you can invest.I will suggest you to depost in the bank.