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Six Dangerous Habits Learned From Short Term Traders

Thursday, November 10, 2011 - 8:47 AM
It would be hard to find anybody who believes that short term traders don’t have a place in the investment markets but that doesn’t mean that their methods are appropriate for retail or part time investors. As new investors, we often look at how others make money and try to emulate those actions. This can be dangerous to those with little experience. Here are a few habits to limit if you’re a part time investor and want to avoid losing your shirt.

» Six Dangerous Habits Learned from Short Term Traders
4
ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,707
1. Saturday, November 12, 2011 - 1:16 AM
Slaps hand. Guilty as charged. However, my trading account is up 11.15% YTD, while my VTSAX is up . . .

Let's just say, quite a bit less. Even with dividends reinvested.

Don't even get me started on my international stuff (VTIAX and VEMAX). Major red, there.

My CD ladder just keeps clicking along at a boring 3% (or thereabouts).

It's good to have eggs. Just don't keep them all in the same basket.

 
2
BozoBozo135 posts since
Feb 14, 2011
Rep Points: 917
2. Monday, November 21, 2011 - 6:27 PM
The most helpful and hurtful are the news agencies. Their business model revolves around keeping advertisers happy through keeping your eyes glued to their channel.  Ever notice on good days they are commenting happily and on bad days they are using gloom and doom vocabulary?  Crisis, Contagion, Infectious, Dire, etc etc with big red and yellow letters.  As humans, we love a good drama.  Add money into the mix and those can be some volatile and costly mistakes by trading on their news.

I have been in the business for over 16 years.  Sometimes I even get lost in the talking head conversations.  I don't expect my clients to understand everything.  CNBC does make my career harder.  It creates more questions than it provides answers.  I encourage people to watch Bloomberg if they can get it or the Nightly Business report on PBS at 730pm PST.  Facts.  Stimulating conversations.  Less Sensationalism.
1
WealthManagerWealthManager8 posts since
Nov 21, 2011
Rep Points: 12
3. Tuesday, November 22, 2011 - 4:03 AM
@ #2, i so agree with you!
1
ninissniniss59 posts since
Sep 22, 2010
Rep Points: 153
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