There are 2 main strategies for those of you who want to start investing in stocks

 

Do you want to start investing in stocks? But still confused about what strategy to use if we start investing in stocks from scratch?
There are 2 main strategies in stock investment that you should know:

1) Invest To Seek Capital Gain

• Prices are more volatile
• Need a strong heart
• Higher return, but unable to provide passive income

2) Investment To Seek Dividends

• Prices are relatively more stable (if you choose the right company)
• Need a strong heart
• Cannot provide fast returns, but the passive income is consistent.

If you want to retire early, then you have to focus on number 2. And for those of you who want to pursue increasing assets, you have to focus on number 1 (Don't forget that number 2 can also get capital gains).

Number 1, the share price is more volatile. Number 2 is relatively more stable (provided you don't choose the wrong stock).

Number 1 cannot provide passive income. If it's number 2, don't expect you to be given a quick profit.

The 'older' you have to focus on preparation on number 2. If you're young, you can focus on number 1. Don't forget, the sooner you start, then number 2 will allow you to retire early.

So, stock trading focuses on number 1 and stock investors focus on numbers 2 and 1.

Number 1 needs a strong heart, and number 2 needs a strong heart.

The trader's mistake is looking for number 2 ahead of the cum dividend. And the investor's mistake is to sell quickly if number 1 is already profitable.

So saving stocks is the initial goal number 1, but as time goes by we will also enjoy number 2.

So is it better to focus on number 1 or number 2? This answer 'depends' on your ultimate goal, yes!

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