Buying for Capital Gains

In every bull market, you get new investors coming into the market to buy and sell stocks to earn capital gains. This can be easy in bull market. They may not win on all their trades, but generally do quite well. They think that they know about investing.

However, along comes a bear market and these new investors lose their shirts. In market corrections or bear markets, the market can plummet 20% to 50%. These new investors usually desert the stock market and often to never come back. This happens all the time.

Personally, I seldom buy a stock just for capital gains although I have done this with my throw away money that I have in the TFSA. I have a portfolio of dividend growth stocks. I know corrections and bear markets can be scary, but I also know that I am still going to collect dividends from my portfolio and my portfolio will recover because of the type of stock I own.

On my other blog I wrote yesterday about Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more. Next, I will write about Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Friday, May 21, 2021 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.