chat ... good morning all ...
re: I am a better investor that a trader.
I have changed my SI profile a lil ....
wanting others to know my style and purpose ...
My "Investment Style":
Turning a day trade entry (the perfect entry) into a position trade for maximum gain.
for as you say Larry, you let go of numerous good investment vehicles when you daytrade ....
but .... as Ron says ... we are addicts, and love the game.
so
how to mix them ...
I have 3 accounts
a long account (for investments) a penny account (for speculative under a dollar) and a trading account (10 minute to a week holdings).
now the hard part ....
if you buy a stock ... that you "KNOW" will be a great long term investment. Buy in long account, but buy it as a day trade .... and treat it like a day trade, take a quick loss if it goes the wrong way, if you are "lucky" and caught the bottom for that day, put a stop in just above your entry. Then forget it. If you get stopped out ...GOOD ... you can buy it back even cheaper. If it goes up change your stop daily, letting the stop have more room for it to move, as you really do not want to be stopped out of the "investment"
example:
I have been trading NSCP for several weeks now ... I want it long term ... but I am not willing to buy at 27 and watch it fall to 19 again, so I put a stop in 3/4 below entry. It is a stock I feel is an excellent long term hold and an excellent trading vehicle. Netscape is not going away, and in the war between MSFT and NSCP, there is no reason for them not to both be successful.
My trading account is a learning tool for me. It teaches me to find the daily support, it teaches me to take quick losses ... for if I don't take the quick losses, I cannot play ... and that ... my friends ... is NOT fun.
Sue |
