Anybody know the difference between strategy and tactics?
A LTB&Her has made a strategic decision for the long term, and will consider most of the tactical information as "noise" unless it points to a fundamental change in the company. Even if the stock price drops off a cliff, instead of screaming "1929" and cashing out, A LTB$Her will ADD to their position (albeit nervously), and quote Buffett. They also will point out that holding company xyz for a decade made for a zillion percent return.
A trader is not concerned with the company at all, in fact, it's share price they focus on. The company "fundamentals" only matter as clues to the direction of stock price. A trader will laugh at those who ride a stock off the cliff and wonder how they can watch their portfolio value get cut in half (or worse). A trader mutters things like "protect your profits" and spend most of their time making sure that they are running with the SHORT TERM, tactical trends. They feel that big money can be made by calling those trends: in a range bound market how else can you do it?
The problem is that on a thread like this, both traders and LTB&Hers interact. "Hey, you got chocolate in my peanut butter", "Hey, you got peanut butter in my chocolate"-- it's a Reeses world folks. Why not quit busting chops and make our cases in a positive manner, for the benefit of all? |
