irby,
I don't agree with the statement that traders should not hold individual stocks in their long term portfolios.
Over the years, I have progressed from mutual funds, through long (holds measured in multiple months), intermediate (holds measured in a few months), to position trading (holds measured in days to weeks).
This has become my capital accumulation/appreciation method, and individual stocks are much more profitable (potential).
Day trading, for me, is a method to produce current income, not build a retirement. It depends on how you are going to spend your time budget. Position trading requires research and understanding of the stocks that you are purchasing, but can be done off hours. Day trading requires focus and discipline while the market is open, but minimal understanding of the company you are renting ownership from. <g>
One does not exclude the other. Position trading has been very good to me and I will continue holding individual stocks for days to weeks to play the wiggles. However, I have researched these issues and take the time to convince myself that holding them is worth the risk.
Day trading will continue to grow in importance to me, but I will never (how's that for confidence in self discipline<g>)hold a stock overnight that was initiated as a day trade. I don't know enough about the stock, industry, phase of the moon ...
Enjoy the ride.
Ira |
