Read the previous part: Become a Trader or Stock Investor? - Part I. The principle is that you have the following goals:
- You want to earn extra pocket money.
- Want to get regular income per month.
- You want to increase your savings.
- You don't like to keep old stocks.
- You really love technical analysis.
- You prefer to be volatile and can't wait for long periods of time.
So, 100% you have to be a trader, not an investor. If you have the following principles:
- You are very deep in fundamental philosophy.
- You can't stand short-term fluctuations in stock prices.
- You really like reading and analyzing financial statements.
- You have the principle of wanting to have a growing / established company.
- You don't like short/medium term technical charts.
- You want to set up a retirement fund.
- You want to get multiplied assets.
- You want to be able to pay for your child's schooling in the next few years.
Then 100% you have to be an investor, not a trader.
So don't let you say that you want to be a trader even though you continue to learn fundamental analysis. Or conversely, you learn to read charts, such as the relative strength index when you want to be an investor. Actually what is the main purpose of my post?
In addition to emphasizing to you, that the principles of traders and investors are completely different, in this post I want to emphasize to you that you DON'T BE OUT OF FOCUS. The main mistake of traders is that they are not focused. Many traders are scalping traders, but also swing traders.
Then, suddenly hold the stocks that 'stick' for investment reasons (become an impromptu investor). Read the post: The Cause of Stock is "Stuck", Traders Don't Want to Cut Loss. Already a swing trader, it turns out that the trader has also become a mid-term trader. There are also those who have decided to become daily swing traders, it turns out that they also become monthly swing traders.
Some become traders and then also become investors. When I became an investor, it turned out that I chose growing companies. But on the one hand, it also chooses well-established companies, on the grounds that they want to receive dividends continuously. Wow, that's a hassle, right? If that's the way, you become unfocused.
However, the reality that I encountered in the world of capital markets, most of the mistakes of market participants also lie in their focus, whether trading or investing. That's the purpose of my writing and surveys on this web, so you don't fool yourself. If you read the title of the post above, it looks very simple, but believe me your unfocusedness is what causes you to lose out in the capital market.
When you don't focus on being a scalping or swing type trader, when you can't focus on being an investor. And you choose a lot of typical traders, then you will only be confused in determining your trading method. This ultimately frustrates you.
Then, what should you do? Read the continuation of this post: Become a Stock Trader or Investor? - Part III.
