Friday 2 September 2011

PUNT / TRADE / INVEST

PUNTto gamble; bet (as in dictionary).
Where in our KLSE, quite a lot of retailer like to do it , especially on warrants. I would grade intraday traders as punters.

TRADE: to buy and sell (stocks, etc.)/ to have business dealings (with someone)
Well, I would rank this under short term investor, like doing a short term business. So, the "Short term" is important. Well anything between 1 week to 6 months would be a trade to me.

INVEST :to put (money) into business,stocks, bonds, etc. for the purpose of obtaining an income/profit
Hmm, initial intention for stocks is for us to invest not to trade or punt, but anyway thats life, peoples are creative :) So, to invest in stocks would be like to be owner of the business the stock that you are buying. Surely, we do start a business and sell it off in a very short time right ? So, I would like to use the term invest, if one is to buy a stock for more than 6 months and keep for a very long time (this depends on whether the business is profiting or not) So, in future, I would analyse define a particular stocks based on PUNT, TRADE OR INVEST.

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