oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
You said "if you're a trader" - so, if you only keep a stock for a year, is that considered "a trader?"
Yes, IMO.
The Market Index trends ever upward at about 11%/yr over a longterm (20, 25, 30 yrs). But statistically, in a single year, it may go down 40% or up 50%, in other words, it is inappropriate to invest your cash for a year, the outcome cannot be predicted. But over a long period, the market ups & downs statistically average - so if you wanted to invest for 30 yrs in the market index, the probable outcome is that you'll get a AVERAGE of 11%/yr - ie, your money doubles about every 7 years - $10,000 would grow to $220,000.
A trader guesses whether MRO, at 35, will be 50 in a year. An invester expects $35 to be about $800 in 30 yrs - and it doesn't matter whether it goes thru 50 or 20 to get there.
As for your savings - that is the best way to store your shortterm money. Shortterm money storage is savings, CDs, money markets - they are designed to be low risk and to approximately match inflation (so that your purchasing power will be thre if needed).
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