View Full Version : Investor vs Trader
05-13-2006, 01:56 AM
When I joined here, I did it looking for investments of 1 - 2 yrs. I see a lot of folks bumming out over 2 bad market days. Doesn't that just mean it's time to watch for bottom so you double down? How many here saw things were a bit high and managed to take a half a position off before the drop--when there was speculation of 5% interest rates? How many here are day/week trader's? How many here are investors with 1 - 2 yr outlooks?
I'm curious because I'm learning the game myself and the only I have that went up was GLD.
05-13-2006, 03:25 AM
I hold multiple positions.
I have my long term plays 1-3 years, that I revist on a weekly schedule. For these, it hurts a little bit, but I know before I am ready to move on, they will probably come back and above where they were before the dip. However if they have a something terrible happen, my alert will go off and I will change stocks..
I also play the day/week trades. To do this, I believe you have to be able to play both sides. Alot of people finished this week in cash. I stayed in stocks all week and am green for the week. I feel I was prepared for the Fed meeting and that I spotted this little correction was going to take place. I told myself if they did not hint at a pause in June that we might have a mini-selloff, so I opened several short positions. So I loved this week....But I can completely understand how some people feel more comfortable in cash than shorts....as shorts are a risky play. I think it all comes down to your personal choice. 10 people are all going to trade differently through the same market conditions.
Disclaimer-the above returns do not include my speculative penny play money that I love to throw around.
05-14-2006, 08:46 PM
I started watching Cramer last year and set aside a small amount of Mad Money...I have lost more than I made not from bad stocks but the learning process...For example, you can talk about Falling Knives all you want, but until you catch one, such things are "out there"...Even learning Scottrade cost me a little not appreciating certain terms...With each loss, I feel stronger and more assured...I am at the point of trying to really learn the fine art of Speeding Slowly...I am inching back...I love the stock market...I have to remember Master Cramer discovered his love when he was 9, so, dah-h, he obviously knows the game better than I ever will...Watching his show for me is fun learning about what companies do, e.g., VeriSign...I take his picks with the proverbial grain of salt...
05-14-2006, 11:55 PM
Everything is relative.......... and depends on where you are in your life. The "Future" is next week for ME so I have both semi "long term" positions and then I have "trading" positions.
There is no such thing as one size fits all when it comes to the market, we all have different goals.
I don't think anyone was naive enough to believe the market would continue to climb without a major correction....... it was just a matter of time and that time is upon us.
05-15-2006, 05:16 AM
RSIs showed this
70+ and climbing and you will get a Tipping Point, e.g., gunning an engine
Nothing has changed: for example, B.R.I.C. still is soaking up everything
To me, last week was a time to buy low to sell high when the next Tipping Point comes, and it will
A good stock is still a good stock
Patience is a bitch, but she works!
05-15-2006, 05:01 PM
I'm a long term investor. Been in the game since 1999 so I've seen a lot of action. Became a professional in 2003 and been having fun investing.
I try to invest my portfolio as efficiently as possible, holding REITS & fixed income investments in Tax Deferred and Roth accounts. I have a small amount invested for short term/day trading/swing trading but the majority of my holdings are invested for the long term...50% in mutual funds and 50% in individual stocks.
I try to take Cramer's picks in perspective to my overall goals. I'm still in my twenties so I have a long investing life ahead of me and learning things each and every day.
05-15-2006, 05:05 PM
Near term weakness might be buying opportunities for companies that are accelerating their growth, but are seeing near term weakness due to current market factors. Its easier and less stressful to buy with a near term to long term holding period (3mos. to 1 year). I like to look at ROE > 15% w/ double digit growth rates the past 2 quarters and little debt.
Technically, markets are starting to test their support levels. Might be a fun time to make quick trades and lock in the ho-hum 5-10%.
05-15-2006, 05:30 PM
I find with Cramer, I have to listen closely, because he drops a lot of good observations almost as an aside...For example, on his Fri show, I wonder how many caught when the best time was to trade on one of his tips...In sum, I mainly just enjoy the show and learning about companies and what the heck some of them do...He has taught me to be more observant...
05-15-2006, 06:12 PM
I'm a day trader. IB keeps locking me out because of it. I made money last week, and I'm still 100% cash.
05-15-2006, 07:04 PM
I just started watching Cramer and have purchased one of his picks. He also mentioned a stock that I had been in for a few months. I have been investing for many years now. I had been holding my stocks and mutual funds for a long time, but they were just languishing. So, I have recently become more active in trading. I used to day trade a bit and will be watching a few stocks and should be day trading again soon, depending on my time. I like to look for popular stocks that have been trading in a range, buy when they dip and sell when they rise. Of course, you can miss a big move this way, but overall, you can make more money by doing this. I wish I sold my LVLT when it more than doubled on me! Course, Cramer said it is going to 10, so I have been holding this one while it drops...
I found it interesting that he said the best time to buy is 2 1/2 days after he recommends a stock. So, a stock mentioned on a Friday should be bought on Tuesday, I think it was somewhere around 10a.m.- 2p.m. or so... Watching Rentek (RTK). It seems that his stocks rise as soon as he mentions them and then they pull back. Like I said, I have just started watching, so I could be wrong about this.
At the moment, I am looking at lower priced stocks, hoping for a quick double or a nice run. I would have no qualms about selling and possibly getting back in after a dip. Lower priced stocks would allow me to invest less per trade, all the while keeping most of my money in mutual funds. If I do well, more mutual fund money will be put to work looking for short term gains!
So, the bottom line is: I'm a little of both!
05-20-2006, 11:54 PM
I see more young people today losing their hard earned dollars, having been duped into the lure of a fast buck.
I like trading too, but it is prudent to do so with a small percentage of your total portfolio and only with funds you can afford to lose.
You guys starting out have the greatest potential of acheiving wealth over time by taking a disciplined approach to your investments.
I remind myself every day that I'm in this to make money, not for the thrill of quick gains.
The following is posted over my office desk:
INVESTOR OR TRADER ?
THERE IS A DIFFERENCE
It is foolish to try to time the market.
Long-term investors should identify attractive stocks and buy them when they look like good values.
It only makes sense to sell if you think a stock is way overvalued or if you believe its businesses or finances are seriously deteriorating.
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