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Active and Passive Investing
By Create Wealth Through Long-Term Investing and Short-Term Trading  •  January 25, 2009
[caption id="attachment_1447" align="alignright" width="234" caption="Photo by rednuht"]Photo by rednuht[/caption] There are 2 types of Investing. Passive Investing and Active Investing. One requires frequent time and effort in seeking opportunity, while the other requires less frequent time and effort. Passive Investing could be thought of as a stock account that pays high interest (dividends). You add the stock, and passively it grows. Hopefully, You can look back in 10 years and find that constant addition made you a nice growing wealth. However, it can be very disheartening, instead of growing wealth, you are staring at diminishing wealth and made you feel poorer. Passive investor can be thought as a farmer planting Winter crops and waiting for Spring to come, and when crops are ripe, he may harvest them. However, even the corps are ripe, he may feel that the crops can grow further. Active Investing can be thought of as something that needs your attention. More attention, the more likely the interest (nett profit and dividends) you receive. Yes a high yielding stock account needs your attention when adding stock, so require more time and effort from you. Maybe more mental and emotional stress. Read more...
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By Create Wealth Through Long-Term Investing and Short-Term Trading
I am 62 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016. Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 3nd year Uni in SUTD. I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild. I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038. Cheers!
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