Do you keep separate Trading Accounts and Investment Accounts?

I think you should. I think it is a very good habit. It forces more thinking, more reviews, reduces careless mistakes.......

Investment Accounts

For shares you intend to keep for next 12 months or more or at least doublings and multiple baggers.

Trading Accounts

For every thing else.

The duality and uncertainties of share market

Every thing you learn about Investment is different when trading. Every thing you learn about Investment is not applicable to Trading. So it makes sense that the two portfolios should be kept separate. 

By keeping them separate you don't confuse your own brain....don't ask your brain to do multi tasking. Your brain is never designed to do multi tasking well.

To recap

 Posted by qqq3 > Oct 5, 2018 12:31 AM | Report Abuse X

kc 

what I don't like about your approach to stock market is you like to teach people to look for low quality but "cheap" stuffs. 

I think most people are better served if they stick to good quality stuffs. 

true, what I say about you. 


People like u...always only like to talk about valuations, valuation this valuation that, as if stock market can be so easily valued, people like you will only land up with low quality stuffs. 

intrinsic value....margin of safety......lol.....The more you talk about intrinsic value and margin of safety....the more likely your portfolio is full of low quality stuffs ..........................

 Posted by qqq3 > Oct 5, 2018 12:52 AM | Report Abuse X

Softbank is different....Softbank never ask to buy the stuffs with margin of safety.....Softbank asks to buy stuffs with the best long term prospects......and often at out of this world valuations for stuffs they like. 

Not saying we can all be softbank investors or even that they are softbank kind of investees in Bursa.........its still a good philosophy to approach equities listed in the KLSE. 


Good stuffs are never cheap, cheap stuffs are seldom good, unless it is in the middle of a severe bear market. 

I think is a good motto to follow......At least then , there is a focus on getting stuffs of higher quality.

 Posted by qqq3 > Oct 5, 2018 01:02 AM | Report Abuse X

The above 2 posts presupposes we are talking about investments and holdings of at least 12 months or even longer. 

The shorter the intended holding period, the more rubbishy stuffs we can put into the portfolio, I guess. 

I may even consider putting some of your rubbishy recommendations if the intended holding period is short enough..............if the intended holding period is short enough, then it is all about timing considerations.

I think the above are some of my most significant postings in i3.  I believe that all  the people who find success in stock market has trading shares as well as investment shares and has found a way to separate way them in their minds....They each require different strategies and tactics. So, you shoud keep them separately to assist your brain.

For Investment Account...........for the majority of the peoplle...for the general public, .........there is nothing better than to only put companies of the highest qualities in their investment accounts....Highest quality in terms of management, trustworthiness, capability , and excellent business sense from your perspective and from company perspective. Such shares will always recover  from any sell off given  enough time.

Common mistake that people make in their investments is that they think just because the share  has good FA, or good TA  or has already drop a lot from the peak, or from their cost, the share will always recover.  In reality , for long term investments, the quality of the company business and its  management is a better bet ( of eventual recovery)  than temporary markers such as quarterly earnings and its position in the charts.

Knowledge is not skill. Skill only comes from practice, repetitions , habits and character. Do not mistake knowledge with skill. What you want is to reach the stage where your skill helps you to make money ( and avoid huge losses) ....knowledge alone is not enough. You need to make good practises into habits and to help your brain as  much as possible .  As they say, for long term success, the process is more important than short term results. You have to look at the process carefully. Otherwise you can be led astray  by short term factors and luck or unlucky factors.