Sentences with phrase «longer than traders»

As an individual investor, your time horizon is considerably longer than a trader.

Not exact matches

Now, one trader is trying to capitalize on the recent strength with an options strategy that will pay more than $ 1 million, as long as crude prices don't fall dramatically in the next few months.
«The traders are happy as long as they win more than they lose,» he says.
This is a bullish strategy in which a trader will gain exposure to a stock by getting long two separate options strikes of the same expiration rather than create a spread.
And now that the time for revisionist history has arrived, and strategists no longer have to serve a political agenda and scare investors and traders into voting with their wallets, the research reports calling for precisely the outcome that we expected are coming in fast and furious, starting with none other than Goldman, whose chief strategist David Kostin issued a note overnight in which he says that «the equity market response to the election result will be limited» and adds that «our year - end 2016 price target for the S&P 500 remains 2100, roughly 2 % below the current level of 2140.»
However, the small trader is more likely to be successful by trying to select a long - term winner than by trying to pick tomorrow's «hot» stock.
At such times, traders and investors who focus on doomsday headlines from mainstream financial media sites are more than likely to be shaken out of their long positions... especially those who lack conviction in their trading system.
This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including, without limitation, certain former citizens or long - term residents of the United States, partnerships or other pass - through entities, real estate investment trusts, regulated investment companies, «controlled foreign corporations,» «passive foreign investment companies,» corporations that accumulate earnings to avoid U.S. federal income tax, banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities, commodities or currencies, tax - exempt organizations, tax - qualified retirement plans, persons subject to the alternative minimum tax, persons that own, or have owned, actually or constructively, more than 5 % of our common stock and persons holding our common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or other risk reduction strategy.
If, for example, a trader has a win rate of 70 %, but allows their average losing trade to be 300 % larger than their average winning trade, he / she will be net negative over the long - term.
Other traders, especially when trading or investing for a longer period than generally associated with day traders will use fundamental analysis.
Even though these are long - term assets, it seems that there are now more momentum investors and macro traders than ever trying to play this space.
A long call is when a trader believes that the option exercise price will be greater than the share price and that the share price will increase.
In the above quote, Eckhardt is talking about how many traders tend to take small profits because they are more concerned with «winning» than with their long - term profitability.
Remember, the vast majority of the world thinks it's impossible to consistently make more than 10 - 20 % / year returns so everyone eats up boring, conservative, diversified mutual funds and long - term investments, at their most speculative being in giant companies like Apple (AAPL) and Google (GOOG)... viewing inspirational stories like this turning $ 1,500 into $ 1 million and and this international trader and this teenager with skepticism...
Their traders are able to stay in the game longer and are not so easily tempted to invest more than what they should since they start with a large enough trading capital.
Gain these skills is far more time intensive than using a trading robot, but it is going to help you to grow your skills as a trader and give you the background that you need if you want to be successful over the long haul.
For investors who are interested in generating steady passive income rather than quick wagers on the market, it is advisable to focus on long - term trades with low leverage, spread across a variety of instruments (or spread over a multitude of traders, with social trading).
Since it is built by a trader and long - time investor rather than by a developer.
While overall retail sales growth exceeded market forecasts in June, delivering a long - awaited shot in the arm to traders, food sales growth was weaker than expected due to intensifying price competition between Woolworths, Coles and independent retailers.
Neither shorting or going long the pound makes you anything other than a currency trader hoping to be on the right side of economic reality.
Traders, on the other hand, are generally less risk averse because they deal with losses every day; they work with large portfolios of stocks tend to look at the long - term, bigger picture, rather than focusing too much on individual, day - to - day ups and downs.
Speculative traders who focus on high - risk, high - reward stocks (such as penny stocks) are more heavily scrutinized than someone who invests in blue - chip, dividend paying companies that are held for the long term.
Position Trader: This refers to a commodity trader who either buys or sells futures contracts and holds them usually for an extended or longer period of time than a single trading session, as distinguished from a day trader, who will normally initiate and offset a futures position within a single trading session.
Many people that are critical of active stock market operators and believe that winning traders and investors are more lucky than possessing of skill have not thought through what the long t...
That means trader A will continue to trade as long as he does not give up more than $ 500 from the intraday high mark of profits.
It is no big surprise that traders who take a longer - term view of the market and trade higher time frames make more money, on average, than day traders.
The market is unlikely to grow forever and corrections are made along the way, but as long as you take an investor's mindset rather than one of a trader's, you will be good to go.
In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the big picture, and only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it
Trading is the ultimate test of being able to ignore short - term temptations like trading when you shouldn't and risking more than you should, for the longer - term gain of being a profitable trader at month's end and year's end.
However, consistently making money is a different story, so over the long - term there are going to be fewer traders who have made money than who have lost money.
Long - term investors who stick to broad index funds often do better than the active traders.
Yes, given that the average trader loses and accepting that this strategy may not guarantee a win in the long run, it's significant that by using an entirely random entry, you get a higher success rate than the average trader.
Traders who jump around from the 5 minute chart to the 30 minute chart and back again, are naturally less likely to have a consistent and smooth long - term equity curve than those traders who put their focus mainly on the daily Traders who jump around from the 5 minute chart to the 30 minute chart and back again, are naturally less likely to have a consistent and smooth long - term equity curve than those traders who put their focus mainly on the daily traders who put their focus mainly on the daily charts.
In the above quote, Eckhardt is talking about how many traders tend to take small profits because they are more concerned with «winning» than with their long - term profitability.
Margin requirements for spreads are generally lower than outright long or short positions, and whether the price increases or decreases the traders risk is limited to the change in the spread, since both a long and a short position are held at the same time.
Not only does holding an ETF protect you from individual stock gyrations, but chances are you're like to incur lower trading costs as well since ETF and mutual fund investors tend to hold their positions much longer than individual stock traders.
Buy and holders should be doing it in a longer time frame than swing traders, which is still longer than that of day traders.
While the leveraged ETF can fill a need in the day trader's arsenal or be utilized for a once in a blue moon trend trade, they are certainly not suitable investments for an investor with a time horizon any longer than a week.
Where a trader might make a short - term «swap» based on a higher yield for a bond than its peers, the credit analyst focuses on longer - term issues.
Because the note resets its leverage daily, traders holding for longer than one day face the problems of path dependency and compoundingthe notes long - term performance is extremely difficult to predict.
Many people that are critical of active stock market operators and believe that winning traders and investors are more lucky than possessing of skill have not thought through what the long term winners have in common.
It is a method for position traders who take positions for longer than a day.
The traders who have been in the business long enough know that a barometer for success that spans more than a week is essential.
Of course, many traders choose to sell short at new highs, thinking a security has risen too far, but this is a recipe for disaster because uptrends can persist longer than predicted by technical or fundamental analysis.
Professional traders will always have some way of keeping a track record, it's important to see your trading results over-time, because pro traders know that trading success is measured over a long series of trades rather than just a couple weeks of trading results.
So if you're not a short - term trader, just use mutual funds of several more asset classes than just the DJIA 30 or S&P 500, and you'll do much better long - term.
After all, if you feel compelled to react to every blip in stock price, you're acting more like a trader than an investor, and may be missing out on significant long - term growth.
If a trader risked getting into 2000 pips drawdown (or more, potentially more than their free margin can tolerate) for the usual 100 - 200 pips profit it would mean a disastrous risk - to - reward ratio accompanied with a potentially long - term capital lock.
Even if successful, most aggressive traders get taxed more heavily than those with long - term gains.
It places the trades either long or short on trend reversals and is more accurate than any human trader.
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