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Long Term vs Short Term Trading

Short Term vs Long Term Trading
Written by Andy

Is short term trading worth it? In the current volatile market conditions probably yes. But is it worth investing in for longer term buy and hold investment strategies?

This is about learning and development, for everyone. It doesn’t matter how long we have been doing this, or how militant we can be in order book watching (erherm..), there is always something new to learn. That is one of the wonderful things about the market too.

Ultimately it is case of finding what works for you. There are some brilliant longer term investors on these boards. I won’t name names, but if you have a peek in the ADVFN boards in the likes of CNIC, SCE and CAPD, you will see a few. It just takes abit of time to work out who is on the money and who isn’t, but it is well worth keeping a track.

Ultimately it is case of finding what works for you. There are some brilliant longer term investors on these boards. I won’t name names, but if you have a peek in the ADVFN boards in the likes of CNIC, SCE and CAPD, you will see a few. It just takes abit of time to work out who is on the money and who isn’t, but it is well worth keeping a track.

What Works Better? Long Term or Short Term?

Most would say the former. The majority of short term traders lose money. It is very tough to keep hitting short term trades and beating the market. I have traded short term for a long time, it seems to work better for me. I am absolutely pants at long term investing.

I can’t see beyond my nose a lot of the time, but I have said that I will be trying properly for the first time now. Properly as in holding for years rather than months or just bailing using a stop, but I am trying now because the market is gloomy so I feel it is a good time to have a go with valuations beaten down. That doesn’t mean my picks will do well. I could end up being the worst long term investor ever, and the wider markets could still fall back substantially, but I am working on that side, even if my positions are small.

The interesting thing with markets though is people only need to find one thing that works and just keep doing more of it, rinse and repeat. It clearly isn’t easy, but it all goes back to the opening comment – it is all about exploring, learning and developing.

We’re all different and we’re all at different stages in that development cycle.

Get stuck in, make risk management the number one priority, and see how it goes with little steps. I don’t know where you are investing wise of course, so apologies if you already know all of this, but maybe some help for any very new folk.

And on that note…

Back to wandering around the market like a nutter trying to find interesting activity.

About the author

Andy

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