Read the previous part: Become a Stock Trader or Investor? - Part III. If you want to know, I am a trader or investor, I am almost the same as most traders - as there is the survey results above, namely I am a swing trader who trades short-term, only a span of one day to less than one month. But on the one hand, I am also an investor.
There are stocks that I deliberately hold for the long term, because based on my analysis using a growth investor strategy, the company's shares can grow in the next few years. However, the portion of my trading capital is much larger.
So, in conclusion, which investment and trading is better?
Trading and investing can't be better. It all comes back to you, back to your character. And as I have explained, being a trader or an investor, it all comes back to your own goals...
Well, now I will explain material that is much more weighty. Please read carefully, so you don't go the wrong way. After reading the three Parts of my previous post, you may be wondering:
"If Bung Heze's explanation in the previous part was more about my desires and needs, to decide to become a trader or investor. Then, how can I say that I am suitable to be a trader / investor without practicing in real stock market conditions / practice in the field? "
Good question. That's what I'm going to cover in this post. To decide to become a trader or stock investor, you should consider:
Your patience and mental level. Suppose, you are good at analyzing a stock, say stock A for the long term. You are good at reading financial statements, you understand the company's line of business, you understand the company's projects and their potential for the long term. In essence, you are very good at fundamental analysis.
Then you say you are going to invest in company A, you buy its shares at Rp900 per share. Two months later, the share price rose drastically to Rp. 1,200.
Because the profit is already large, suddenly you can't stand it and sell the shares. If you are that type of person, then you are 100% unsuitable to be an investor, even though you are good at fundamental analysis.
Likewise, if when you buy a stock, but your hands are itching to sell the stock when it rises, then you are not the type of investor, you are the type of trader. Or, you can't stand it when the stock price in your portfolio continues to fall.
You can't stand it if you don't often monitor your stock price movements in front of the monitor screen. If you are that type, then you are more suitable to be a trader.
So don't admit that you are a stock investor, even though you just held a stock that you believed was going up, but 1 month later when the price went up 15%, you immediately sold it because you couldn't stand seeing big profits.
Being an investor or trader is not just a matter of analytical knowledge. Then what else do you need? Read next post: Become a Stock Trader or Investor? - Part V
