AskJaycee # 4: Gaano Kaiksi ang Short-term Trading at Gaano Katagal ang Long-term Investing?

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how short is short-term trading and how long is long-term investing

“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?

Siyempre hindi.

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.

Jaycee De Guzman

Jaycee Silverio de Guzman is a computer scientist by profession. He is the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. He is a husband and a father.
Jaycee De Guzman

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