There's only so much you can earn from trading because being a high risk strategy, most people won't "punt" a big percentage of their warchest. So what if you hit 7 trades out of 10 and earning few thousand in each trade.
In value investing, the profit from capital gain together with dividends can be enormous to the tune of six figures per quarter. People in the investing world should and must know the power of compounding. Peter lynch, one of the greatest investor in the 80s emphasized that trading in stock market is not feasible in the long term.
He said,"Investing in stocks is an art, not science, and people who have been trained to rigidly quantify everything have a big disadvantage." Why choose to monitor the market and time it everyday when you can have the luxury of letting it run by itself?
Warren Buffett, the greatest investor of our time once said that,"Our favorite holding period is forever." People who think they found the grail in trading are fooling themselves. At the end of the day, the real investor who made a fortune does not belong to those who theorized everything according to the chart.
A value investor who has a 2 million portfolio with 7% yield (achievable in under 15 years) can generate $140,000 of passive income per annum. This amount can only get bigger with the power of compounding. In value investing, time is your best friend but for trading the longer you hold to it will be detrimental to the trade. The stress gather from constant trading is not worth the time and effort.
