RE: Question14 Apr 2021 12:17
Paul, there is an in between LTH and trader. I probably fit that sub section.
The assumption behind a long term hold is that it will simply continually go up over the years (yes it might be sporadic and there will highs and lows, but it will rise and maximise profits better than any other way.)
However, how long term is long term? 1 year, 5 years , 15 years, more?
And what guarantee is there that it will continue to rise over the years. Look at the banking sector, the oil sector, the retail sector?
Small Bio Pharmas are Very high risk, so LTB&H is an extremely risky gambit in my book for these shares. The majority of all AIM shares are probably higher risk than ones in the main market because of less regulation. (and the dreaded MM manipulation!).
I have tripped over a system that works for me and I am content to hold a share probably longer than you would expect a trader to do, but my "philosophy, if you like, is not to be tied to time limits or worry about taking a loss, nor am I the least bit concerned about thinking a stock was a great buy one day, and the next day with new news, doing a100% volt face.
I don't care how much I will make (I have targets when I go into stocks), just as long as each trade leaves me with more than why I started I find that then compounds up fine and works better (for me) than LTBH.
All the best