As discussed earlier today, I have been re-evaluating my investing strategy and am in the process of a significant transition. A long-time buy-and-holder, I have slowly (slower than most) come to understand that one cannot just tighten their grip until ones knuckles are white. There is too much opportunity available to capitalize on the short and medium term market gyrations. Tha being said, it is time to jump ship from investor to trader.
I know the term trader has a negative connotation. But its time to abandon my prejudices and embrace this way of life. No. I am not about to quit my day job to scalp or day-trade. Rather, I am going to reduce my hold times, capture the trends, but try to reduce exposure to loss. Sure, losses are part of the game, especially for the trader. But through proper risk management, I believe it is possible to minimize losses while maximizing gains.
The metamorphosis is underway.
No related posts.
I am an amateur trader and investor with over 15 years experience in the stock market. I was bred to be a fundamentalist and followed fundamental analysis until 2009. Following the 2007-2008 bear market, I began to shift from a buy-and-hold strategy to trend-following techniques.