Each style of active trading has its pros and cons.
Not exact matches
Part
of the preparation for
trading should involve understanding his
trading style, knowing how
active a trader he is, and how much, on average, he is willing to risk per
trade.
High - yield funds require a very
active management
style, which can mean expense ratios
of 2 to 3 % to compensate for the fees generated by frequent
trading of assets.
This is also where you should take time to learn about
active vs. passive management
of your ETF fund because
trading styles can affect your bottom line as well.
Even so, it can be beneficial for those with more
active, higher - volume
trading styles to set aside a portion
of their income each month as savings in a longer - term portfolio, potentially in the form
of annuity.
While there might be some overlap, each side seems to feel that their respective target client base is diverse enough in terms
of trading style (
active trader vs long term investor) and geography (Quebec vs Western Canada) that competition is not really a focal point.
Mutual and exchange -
traded funds offer two types
of investment
styles: passive index fund investing and
active investing.