RE:Differences between a LONG and a Trader Chefboy69 wrote: a long DOES NOT WATCH THE STOCK PRICE EVERY DAY( they should keep track of it on a weekly basis) as I did and sold some at $3.30..which made my INVESTMENT safer..as I took some profts and now have gotten 50% of my money back..but still hold a core position,,,
a trader uses Level 2 if they are smart,,if not they are a newbie trader...and will lose..
A LONG is comfortable with his/her investment..
a trader buys as low as he/she can and sells as high as they can..as fast they can...a trader can not HOLD a stock while it goes down...they much rather sell and buy in lower...
A long doesn't care...Time has a way of making an investment give you REAL returns as opposed to quick and easy...and a trader will always tell you how much they made off a stock..BUT NEVER HOW MUCH THEY HAVE LOST....
just like a gambler
so decide
or you a trader
or a LONG
I do not see any difference.
What you did is: When the stock price goes up, you accumulate more cash. Then when the stock price goes down, you accumulate more shares. If you are trapped, you do not cut loss but hold.
The difference is you keep part of your shares with you because you are not sure how high the price will go. So, it is 50% vs 100%. It works.
So, here is my way.
When the stock price goes up, I accumulate more cash. Then when the stock price goes down, I accumulate more shares. I sell part of my shares along with the price going up. After I sold out, if the price is insanely high, then I start short(if I can borrow some) position. Then when it goes down, I cover my short first. If it keeps going down, I will use my cash to buy and average down till it goes up again. Then I hold for the time to sell. So, it is 50%, 100%, 120%.
There are about 220 trading days, most of the time, I am in cash. I only act when I see opportunity to make money. I only invest in good stocks(with solid earning report) and index ETF.
I really do not see what is different between your strategy and mine.
I just love this game. If I do not do this, I think I will be in casino all day.
:)