Time in the market & Timing the market
They sound like opposing terms but can we have the best of both worlds? Answer is CAN... I am a believer of both concepts and Uncle8888's Pillow Stocks Strategy . The whole process starts from (1) picking the right stocks (I am a lousy value investor, therefore I tend to pick 10-20 stocks from across the sectors instead of focusing on a few of supposedly good value ones), (2) protecting our capital by reaping the capital gains from the gems after some time even though we won't know for sure how long that will be, (3) staying vested at 'zero cost' to reap dividends (beauty of pillow stocks strategy). How much we reap, in terms of dividends and capital gains, depends on our time vested in the market . On the contrary, we should be regularly weeding out the money-losing stocks (in my opinion, sell when the stop-loss price is hit even if the stock pays dividends) to invest in the money-making ones to ride the test of time. When investing in the right stock...