That brings to mind one of my rules...which
I know is really just for the position trader
and not the daytraders out there--Don't trade
in something that you are not willing to own.
Whether or not there is any virtue to owning and
investing versus trading...well I cannot say.
But it calms the nerves, increases the amount
of research a person is going to do on a position,
and if you fail, at least you can point to the
reasons you owned the stock and say, well, at
least I did the best I could--it seemed like a
good investment, and I was wrong.
On a daytrade gone bad I would imagine it is
much harder to see where you went wrong.
Another thing that seems to help me...is that after
I do a trade, or while I'm reviewing a series of
trades in a particular item...I'll put up the five
year chart of the stock price. This is a good way
to remind oneself of the timescales involved in
real moves versus the noise of the market.
I know you guys here do seem to profit quite a bit
off that "noise", and I'm not criticizing daytrading,
I just think for some people holding positions a bit
longer is better than the day/weektrades. I guss you
could call me a monthtrader, sometimes a yeartrader.
heheh, a woman's alias--Dawntreader, now what book
was that in? A kids book from 25 years ago I'll bet.
A gold star to whoever remembers that name. |
