In the recent 9-month report, I mentioned that I eked out a small return for the latest quarter due to a surge in price of Valuetronics and UMS in the last few days of September.
I am once reminded again that being an average retail investor, it works best for me when I just stay in the market, instead of frequent trading in an attempt to catch the low/high prices.
Taking a look at the year-to-date prices of a few of my holdings, one can see that the spike in prices only occur for a short period of time. Most of the time, the prices just fluctuate within a smaller range. If I have missed that few short periods, I would have miss the return.
Of course, if I am a full-time expert trader and I monitor the price movement closely, I could still benefit from it. However, I am not and I couldn’t possible be looking at the price movement so frequently while working. Even if I am not working, looking at the price at such frequency is not really what I would like to do.
Hence, the best method for me is to just find the correct business to invest in and once vested, stay in the market for as long as possible.
What if there is a market crash? Well, I just have to ride it out. Having a war chest also allows me to take the opportunity to buy more shares of the business that I like.