May 4, 2021
For the average investor, trading is a bad idea. How can you identify if you are trading too much? If you see hundreds of trades each month, or even year – this is too much movement in most cases. Even 50+ trades in a year can be symptomatic of something wrong for the average long-term investor. Either you are buying the wrong stocks, or you do not have a realistic time horizon (holding period in mind). In our June 2020 Webinars, we put together an entire section on Day Trading – using empirical studies. The findings from the most recent: “It is virtually impossible for individuals to day trade for a living. The study found that 97% of all individuals who Day Traded for more than 300 days lost money. Those are not good odds.
As an investor, stocks you buy should be with the goal of holding the stock for 2-5 years – or really as long as possible as long as the business continues to perform.
One of the Common Mistakes Made by Investors – Acting like a Trader
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