Quote:
quote:Originally posted by ratkin
The investor would have largely avoided all the companies which were grossly overvalued and any mistakes would have been relatively harmless (like rbd).
Traders also make the mistake of thinking that investors go down with a sinking ship. This is not necessarily the case at all. As soon as the fundamentals of a company deteriorate or the price moves far above the companies value then the skilled investor will take profits.
As long as the investor selects stocks wisely, exits if the fundamentals deteriorate, ignores short term noise and doom and gloom merchants, stays invested and reinvests dividends etc, then that investor will beat 90% of traders in the long term, will of spent far less time and energy on the markets.
In an effort to bring this thread back on topic...