Only 3 Types of Investor Make Money: Which One Are You?
There are generally three types of investors who consistently make money in the US stock market — regardless of market conditions — as long as they stay in for at least ten years.
1. The “Never Sell” Type
Unmoved by downturns, indifferent to rallies, they seem emotionally detached from market fluctuations. Gains and losses are just numbers in account.
But in reality, “never selling” often means sticking with strong fundamentals. They hold not blindly, but because the business remains sound.
Representative figure: Warren Buffett
2. The Swing Trader
They follow the rhythm of the market: building positions at the bottom, riding through consolidation, profiting from rallies, and cashing out near the top. When done with discipline over time, swing trading can compound into impressive long-term returns.
Representative figure: Jim Simons
3. The “Buy More on Dips” Type
If you had invested $10,000 in $S&P 500(.SPX)$ ten years ago and kept adding during every dip, your market exposure — along with your wealth outside the market — would have grown steadily. Investing in the S&P is a long-term accumulation game. Periodic pullbacks, like the recent correction, offer better entry points than chasing highs.
Representative case: US pension funds
Questions to discuss:
Which of the three investor types best describes your current strategy?
Is your portfolio positioned for the next decade, or just the next quarter?
Or do you belong to any other types? Welcome to comment and let me know!
Join our topic and post directly: Only 3 Types of Investor Make Money: Which One Are You? or leave your comments to win tiger coins~
A tool to boost your purchasing power and trading ideas with CashBoost! Open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
There are only 3 types of investors to make money, which one are you?(2 choices)Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
holding long for sake of holding long does not justify its pure consensus.
In any case there's no right or wrong approach, it's a matter of different angle approach and view point.
No matter what's the your strategies or approach are, the main thing persist in the investing world, Don't loss your money.
@MillionaireTiger @BillionaireN @JC888
I held my U.S. ESPP for more than 10 years. I sold some but forgotten to sell it ATH in 2021. My HNW friend reminded me but maybe that time I was trying to nurse back my health from adverse reactions of Pfizer jab that I overlooked it. Thereafter, I m trying to sell but my desired price didn’t strike. As long as I manage to sell them before I m too sick and bring down the total amount to be less than USD 60K, then I will be safe to avoid U.S. estate tax. Otherwise, my will administrator or executor will be in trouble. The lawyer fees will “eat” up my U.S. stocks. [Sad]
我喜欢在市场恐慌或误杀时逐步加仓，但我加的不是ETF或者盲目的大盘指数，而是我研究过、财务健康、长期逻辑清晰的个股。比如美股的高股息能源股、部分受益于AI基础建设的半导体公司，在它们估值回调或遇短期利空时，我更愿意分批买入、拉低成本。这是一种有计划、有耐心的布局，而不是感性的抄底。
关于第二个问题，我的投资组合肯定是定位未来十年，我不做季度级别的投机。宏观的不确定性太多，短期博弈不仅风险高，而且非常考验情绪控制。我更相信“时间是朋友”，只要买得便宜、企业稳健，就给它时间发酵。
严格说，我可能属于“长期逢低加仓 + 趋势确认减仓”的第四类：**重视价值，也关注趋势，但不频繁交易。**这让我可以既安心持有，又有空间灵活应对波动。
@JiaDeName come participate for coins.