Voya Asia Pacific High Dividend Equity Income Fund T.IAE

INVESTOR vs. TRADER

[Golongagain]

It appears from this article that GOLONG is in fact, a TRADER at heart and by definition. It would also appear that GOLONG is correct in his methods and NOT an IAE turncoat.  Thanks for opening my eyes to this. It is clear GOLONG will profit when others spin their wheels. Thanks for bringing this to my attention. I may change my handle to GOLONG GECKO!!!


Investor vs. Trader... Which Are You?
 
Most market participants consider themselves to be "investors." But if you look at a list of the really big winners on Wall Street, you will see that most of those who make big profits, list themselves as "traders." 

By "big profits" we mean doing better than the S&P 500 Index or Nasdaq 100 Index by a substantial margin over any three year period.
 
INVESTORS

"Investors" put their money into stocks, real estate, etc., under the assumption that over time, the underlying investment will increase in value, and the investment will be profitable. 

Typically, investors do not have a plan for what to do if the investment decreases in value. They hold onto the investment in hopes it will bounce back and again become a winner. Investors anticipate declining markets with fear and anxiety, but usually do not plan ahead of time how they will respond to them. When faced with a declining (bear) market, they hold their positions and continue to lose. 

We all know investors. In many cases it was us before we realized how dangerous buy-and-hold investing can be to our savings. 

Investors do have some knowledge of trading. But that knowledge is tainted by how it is all too often described in the financial press. "Trading" is risky, dangerous, foolish, bad, involves a great deal of work, etc. On the other hand "investing" is good, reliable and safe.
 
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TRADERS

On the other hand "traders" take a proactive approach to their investing. Traders have a defined plan and invest with one goal, to put their capital into the markets and "profit." 

They "trade" with a plan that tells them what to do in any situation. When to enter and when to exit. They never allow large losses. 

Being a trader does not mean you must move in and out of the markets frequently. This is a common misconception.

A trader simply is one who has a plan for entering and exiting. They know what to do if their trade goes against them, and they know what to do when their trade is profitable. 

Traders "do" have a plan. This is where they differ from investors. 

Every Trader Needs A Trend 

If you think about it, you will quickly realize every trader needs a trend to be successful. 

No matter what the trading method used, whether it is pattern trading, swing trading, long term a buy-and-hold investing, fundamental analysis, technical analysis, buying or selling on news events, IPOs, splits, you name it. If the stock or mutual fund does not trend in the required direction after the trade is made, you cannot be profitable. 

Putting Trader & Trend Together 

There are two major camps when it comes to deciding what method to use to plan a trade. There are those who follow a fundamental analysis approach and those who follow a technical analysis approach. 

Investors use both methods to "forecast" future market direction. If combined with an exit strategy, either can be successful, but debate has raged for 30 years over which is the most successful strategy, as well as whether either method truly "outperforms" the markets over time. 

Some very astute market players have said that both fundamental and technical analysis approaches, though they can be profitable, usually are "no more profitable than an index fund." 

There is a scary thought. All that work when an index fund could do as well? 


But there is another approach that is almost never discussed. It is used by many hugely successful traders though the financial press seldom mentions it. In fact, many who use it are very quiet about their successes. They do not try to publicly prove themselves right, they just trade and make money. 

This approach is the use of price to determine trends. Price does not forecast and it does not predict. Price is always right. If prices are moving up, the markets are advancing. Down and the markets are declining. 

Yes, it takes patience to be a successful trader. Yes, it takes discipline to follow the strategy and make the trades which many times go against the prevailing wisdom. This is true of "all" winning market strategies.

There it is . . The workings of the GOLONG Strategy!