RE: RNS6 Jul 2023 12:29
Wyndrum, to me there is a clear difference between a trader and an investor. I think this through my own personal investing journey.
I started in my late 20’s with a £30k pot. For sure, back then I was a ‘Trader’. Basically, looking for where and when the next RNS of many companies would come from hoping to make a quick buck and get rich quick. I started pretty good, made 40% 20%, 15% here, lost some there. It was only at the end of the year I worked out I had spent nearly £3K on broker fees I realised even making a decent 10% was only covering my fees.
Anyway, cut a long story short, over the next 20 years made a mini fortune, lost a fortune, made some back, lost most back again, made it all back, and more!,,,, then lost most of it., so now 25 years on… I have learnt ‘Investing’ is much less stress, cheaper and more fun and (hopefully) more (long term) profitable. Pick a firm or 3/4/5 that you believe in and research into them / the industry a lot and stick with them until a time you need / want the money or you start thinking they are getting overvalued.
I would say if you do more than 10 trades a year, and / or owning shares in a firm for longer then 6 months is a long time for you, if you also sell shares in a company on the day they announce they have been doubling revenue then you are a trader sort, if the opposite to all that, you are an investor sort… you can, of course be a bit of both. I’m not saying there is a right or wrong, just personal preference, experience, and circumstances to all.