Well, that's my own belief Trade_It.
I understand investing and trading are two very different approaches. How about I reword this, I don't believe in the term "long term investing" because I never liked the idea of invest, diversify and then sit on it without doing anything regardless of the market condition for the long term.
I have an exit plan when I "invest" for the long term. I exit my positions if my original assumptions are wrong, that is, the market is no longer bull for the short term and there are too much uncertaintely in the market. Of course, I may be wrong in this, but I am just exercising my own plan I have had in mind.
My definition of long term trading is one may invest for the long term but he/she is always better off to have a proven plan (you can call it investing/trading/whatever) to enter or exit the market whenever deemed necessary to profit and cut losses short.
What's the difference between investing and long term trend trading anyway? (long term as in years)
That is why when people say they invest for the long term, and they exercise trading techniques (sell, wait for correction, go back in again later with fundamental confirmation), are essentially long term trading.
Hope that clears up things a bit. Of course, you may have your own belief in the definition of investing and trading. To me, only trading make senses because everyone does it subconsiously anyway, though not necessary in a disciplined way and with a plan.
Lots of post on here today. I wounder if that's because everyone is now in cash? Nothing to do? Not buying not selling?
Temjin,
One of my observations is when ever we have a sell off or correction the thread heats up and once the market stabilizes it quietens down.
Lots of post on here today. I wounder if that's because everyone is now in cash? Nothing to do? Not buying not selling?
One of my observations is when ever we have a sell off or correction the thread heats up and once the market stabilizes it quietens down.
There is no such thing as "long term investing", only "long term trading".
Where to start with this stunningly ignorant assertion. A long term investor does not worry about market dips, corrections or crashes, hence why they are called long term investors. They do not mind seeing 10, 20 or 30% share price drops. In fact such market pullbacks afford them the opportunity to load up on more of their chosen stocks.
They are not interested in trying to time their entry and exit levels perfectly. If they have purchased companies with good economics at reasonable prices there is no reason to worry.
Although we shouldn't be too hard on Temjin without people like him it would be more difficult to make money.
Where to start with this stunningly ignorant assertion. A long term investor does not worry about market dips, corrections or crashes, hence why they are called long term investors. They do not mind seeing 10, 20 or 30% share price drops. In fact such market pullbacks afford them the opportunity to load up on more of their chosen stocks.
They are not interested in trying to time their entry and exit levels perfectly. If they have purchased companies with good economics at reasonable prices there is no reason to worry.
Although we shouldn't be too hard on Temjin without people like him it would be more difficult to make money.
Everyday the market drops adds another bunch of long term investors!
Ahhhh, it doesn't matter.You have your own beliefs on how to make money in the market and I have my. You can invest for the long term and buy more when it is at the bottom of a correction because you believe in the fundamentals of the companies. And I can trade for the long term and exit when a correction occur and buy back when the trend resume.
At the end of the day, don't we all invest or trade for the same reason, and that is to make money?
The differences between us is we have our own individual style, you play on fundamentals, I play on technicals.
Could you clarify your second sentence above? i.e. "if they bought blue chips lots of penny dreadfuls drop off the board in bear campaigns...."Temjin,
Little do they realize they bought in at the top of the bull market and it may take 5-10 years to get there money back. If they bought blue chips lots of penny dreadfuls drop off the board in bear campaign's, that is a stupid waste of time and money. but the smart astute long term investors see the bottom buy in at acumilation patterns and take the whole whack of the bull run sell just after the top and make a killer% they do not need to worry about all the minor ups and downs they use the bigger ones as adding points
Settle down peoples. Its only a discussion. A nice simple explanation can be found here -
http://www.qwoter.com/college/Trading-Basics/Investor_vs_Trader.html
Could you clarify your second sentence above? i.e. "if they bought blue chips lots of penny dreadfuls drop off the board in bear campaigns...."
Sorry, but I'm really not able to make sense of what you have said.
I would advise any one wanting to see what long term investing is all about, read chapter in Market wizards on David Ryan - Investment as a treasure hunt.
Really changed my opinion about long term investing.
tcoaates_au said:Settle down peoples. Its only a discussion. A nice simple explanation can be found here -
http://www.qwoter.com/college/Tradin...vs_Trader.html
Do you hear that? That's the sound of a 222 point drop... it's so quiet now... I wonder if the Yank Markets are going to tank tonight?
dow pre market already tank -82 points..
so expect no mercy
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?