The debate has raged on for years — buy-and-hold or trade the markets. With the current bear market beating down stocks and volatility — the VIX – soaring earlier this year (though back down to more normal levels) the case for trading has grown stronger. Yes, there are successful long-term investors, none better than Warren Buffet. But if done carefully, with knowledge, training and discipline, trading can lock in profits and limit losses while buy-and-holders watch their portfolios dwindle.
Over the last few years, I have been expanding my investing and trading knowledge by studying the classics of investing and contemporary trading techniques. Now, I am no expert; but drawing upon some of texts in my trader’s library, I will try to share what I have learned and what great traders can teach us. Over the summer, I will take visitors from conceptualization to execution. Topics will include, Devloping a Trading Plan, Indicators and Oscillators, System Development, Money Management, Finding a Broker and Choosing Tools, among others.
There are many experts and resources available out there. My goal is to bring that information together so those new to trading have a place to start the learning process. A springboard to other resources and more detailed information. Exposure to information that will steer you down the right path to success. As I’ve said from the beginning, I am trying to build a place where visitors can learn from my (and others) successes and failures.
Please feel free to me at learned@learnedinvestor.com with suggestions, questions and comments. Let me know what you want to see and I will try to oblige.
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.
I’m a beginning trader, and now that I came across your site, I’ll be tuning in. I like your well-defined trading/learning plan.
I’m working with the setups in the Carr “Trend Trading for a Living” book. My first trades involved the “bullish pullback” setup which yielded several nice candidates around May 14-15. I entered several positions on May 15 and 18, and used a 5% trailing stop as my exit. After the run up on the 18th, my stops triggered on May 20 and 21. I made money!
Now, of course, the bullish setups in the book aren’t yielding candidates, and as you’ve noted in recent market updates, it’s time to look for shorting opportunities. I really am at the beginning of my journey, so it looks like my next step is to upgrade my brokerage account to a margin account, and get comfortable with the concept of shorting.
@trender
Thanks for the feedback. I’m glad to see you’ve had some success so far. If you haven’t already considered it, you can also look to Inverse ETFs to play a bear market. Good luck with your future trades.