If You’re Going to Trade Stocks, Read This First

Regular readers of Automatic Finances will know well that we advocate long term, buy-and-hold investing. Overall, for both small and large investors, it remains the most stable and consistent approach to both wealth creation and preservation. Short-term trading, in comparison, carries considerable risks to an investor’s capital. That’s why it’s important to make that distinction […]

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Keeping “The Market” In Perspective

I have to admit to an interest in the equities market that borders on the unhealthy. I’m well aware that, over the long term, saving and buy-and-hold investing are the keys to growing personal wealth. But still, like a siren call, the excitement and adventure of short-term trading is a seductive distraction. Like any vice, […]

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Investing vs. Trading: Which Are You Doing?

“Investing” is one of the most misused words in our language, especially when talking about finances. Oftentimes, people use the word “investment” in a non-financial sense when purchasing something whose value is liable to depreciate, such as “I finally invested in a new laptop.” But when it comes to the stock market, there’s a difference […]

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