“Sir, how long is long-term investing and how short is short-term trading?”
Bakit ba ninyo gustung-gustong lagyan ng deadline ang mga terminologies na yan?
Non-sense kung lalagyan ng timeframe ang mga yan.
Kapag ba sinabi kong “up to 3 weeks” lang ang short-term trading, ibebenta mo na ba ang stock mo, kahit pa more than likely to continue to continue ang uptrend, porke ika-3rd week week na niya sa portfolio mo today?
Kapag sinabi kong “5 years or more” ang long-term investing, would you continue to hold your position sa stock just because wala pa namang 5 years na hawak mo ang stock kahit pa halos mahimatay ka every time you open your portfolio dahil sa hindi na tolerable ang losses mo?
So para saan pa kung lalagyan ng timeframe ang “short-term” at “long-term”?
Yung tanong na “gaano katagal ang short-term at long-term” ay illogical na tanong.
Ang paglalagay ng “deadline” sa short-term at long-term ay hindi based sa bilang ng araw kundi sa percentage of risk na inapply mo sa trailing stop mo.
For example, when I do short-term trading, the maximum percentage of risk that I apply is 10%.
When I do long-term investing, the maximum percentage of risk that I apply is 30%.
Ngayon, whether I do short-term trading or long-term investing, basta tinamaan ang trailing stop ko, exit na regardless kung kakapasok ko pa lang sa stock or 20 years ko nang hawak ang stock.
So, I, therefore, conclude that the longevity of short-term trading and long-term investing is based on YOUR trailing stop.
PS: Di porke sinabi kong 10% ang max % of risk ko when I do short-term trading ay makiki-10% ka na rin. Remember, each one of us has his or her own financial DNA. Yung iba kailangan ng itakbo sa ospital bumaba lang ang portfolio by 1%. So set your percentage of tolerable risk based on your financial DNA.
More of this in the online stock market course of Equilyst Analytics.
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- AskJaycee # 10: How to Get My Analysis and Recommendation for 30 Bluechips on April 5, 2020 - March 30, 2020
- AskJaycee # 9: Should Experienced Stock Traders and Investors Teach for Free or for a Fee? - February 16, 2020