Tuesday, May 26, 2009

Is it better to invest or trade?

Is it better to invest or trade? Those of you are veterans of the market battle know if you are more inclined to trade or invest. But newcomers pften are perplexed about which road to take. Surprisingly, even some expert player are confused in their approach. They may consider themselves investors but actually have a trader’s psyche and therefore poorly.

Very successful traders are certainly scores of winning investors. What I do know it is easier for most market players to win big by following the investing path to profits. It involves less time commitment, less skill and is certainly easier on your emotions. So why should anyone even consider trading? Simple, traders need the challenge and the action. Whereas most investors are more conservative by nature and like to keep their lives relax and calm, traders lives on the edge.

Do not waste your time trying to choose trading or investing for the best way to make money. There is no best way; either approach can lead to success if skillfully applied. which approach you'd be comfortable with. Use a little introspection to find out what cloth you're cut from, and then become the best damned investor or trader that you can be! It leads to disaster if you decide to invest, but then get so angry because your stock dropped six or seven points that you end up dumping it just before the next upleg. So have an honest talk with yourself. If you obviously belong in one area or the other, then get there. Interestingly, there really are a number of market players who are in the middle and can adopt either approach.

A trader shouldn't wait for the 30-week MA to be violated on a sell off before selling. (In fact, if he can time the sale nicely when XYZ is well above the MA, me trader will often repurchase on dips back close to the MA.). trader should never stay with a position if it breaks below the MA 30 weeks by even fraction!

Investor always used 50 days MA or 100 days MA for checking The Trend! If breaks below that Moving average mostly investors sells it!

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