The Buy and Sell Advisor had an interesting article call Investor Thinking versus Trader Thinking, When to Buy and Sell. The author of this piece, Ken Norquay, thinks we should all think like Traders.
He thinks that investor rely mostly on their advisors and on the merits of their investments whereas Traders rely on their own plans and the merits of their trading system. He thinks that traders are less willing to take risk than investors.
I approach trader versus investor quite differently. Sometimes I am an investor and sometimes I am a trader. It depends on the stock. If the stock is a resource stock or one that goes up and down, but nowhere else, I am a trader.
In the main part, I am an investor. I ride the markets up and downs. I certainly did not learn the same lesson the author did from the tops in 2000 and 2008. He says "The lesson we should have learned at the stock market tops in 2000 and 2008 is that holding stocks through a downtrend is financial suicide." The thing is I did quite well through these problem periods.
I decide when I buy a stock whether it is an investment stock or a capital gain stock (i.e. trading stock).
On my other blog I am today writing about Methanex Corp. (TSX-MX, NASDAQ-MEOH) ... continue...
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