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Thursday 6 February 2020

A share investor instead of a share trader

Well, I am not a share trader anymore but I am a share investor; sure, I might gather better results as a trader and not an investor but I cannot complain. My returns, whilst modest beat inflation on a regular basis.


So, where does that leave me? Well, whenever I generate excess savings, I divert them to the sharemarket for investment purposes. Have I made mistakes? Well, yes, who hasn't? Have I learnt lessons? Yes - plenty of those.

I did previously engage in margin lending and trading, these days I am somewhat more conservative although I do direct funds towards growth shares. I just don't step in and out of trades anymore, now I engage in a longer-term viewpoint.

What I am now doing is purchasing an income stream, I grow my investment through dividends. Every investment-level share I now purchase must offer not only a dividend, it needs to allow dividend reinvestment where I receive automatic shares.

So now I don’t need to go to the market to purchase shares saving transaction fees and steadily increasing my holdings compounding my returns. Whilst a long-term view needs to be observed, I am happy with this strategy and can always trade again in the future.

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