What type of investor/trader are you?

Do you consider yourself to be a trader or an investor and what tools/strategies do you use?

I listened to a good podcast the other day about momentum trading which really flies on the wind of buy low sell high. Momentum trading is about jumping on the wave and getting off before it hits the shore.

It got me thinking about my trading style. I would say I am more an investor looking for long term growth (mainly in ETFs) than a trader which I would only hold for short periods.

Interested to know what strategy/tools the traders out there use? I do use technical indicators (RSI, MACD etc) to find stock that is oversold or overbought which might indicate a trading opportunity. But this can often be blown out the water by news or change to the fundamentals.

What do others do?

2 Likes

I am currently starting out as a Dividend investor not entirely sure since the -15% will start to add up with bigger gains.

I invest in companies that I know about, not necessarily use and dividends pay a big part in my buying process. For example, games workshop, I’ve never bought a product but they make great items. I also invest in stocks as a hobby, as my main investment goes into property.

I’m a Naked Trader…

I basically take my trading advice from Robbie Burns his books are great.

Statistics from papers on trading:

The average individual investor underperforms a market index by 1.5% per year. Active traders underperform by 6.5% annually.

Day traders with strong past performance go on to earn strong returns in the future. Though only about 1% of all day traders are able to predictably profit net of fees.

Traders with up to a 10 years negative track record continue to trade. This suggests that day traders even continue to trade when they receive a negative signal regarding their ability.

Profitable day traders make up a small proportion of all traders – 1.6% in the average year. However, these day traders are very active – accounting for 12% of all day trading activity.

2 Likes

I’ve done short term trading in the past. Majority of trades made a loss and a few made pretty good gains. Overall I’m probably down a bit.

I invest which I count as different to my trading pot. These are all ETF based and are up.

2 Likes

I’m an investor who invests in companies and industries I know. Blend of dividend and growth.

I also often look at what 5 shares have performed the worst in the FTSE 250, research as to why and whether there could be a bounce and try to ride any waves for as long as possible.

That’s interesting. Who are you looking at at the moment?

One stock I am watching at the moment is ULVR - Unilever.

They released an RNS in December announcing a reduction in growth forecast. Since then the price has dropped steadily. I’d be interested in buying if it reaches the 3920 mark. But it depends if it breaks through as it could go much lower. This is one I would be shorting if I could.

2 Likes

Currently Finablr (TravelEx) given their recent hack - interesting one for multiple reasons and will be a spectator only for this one.

Best result Ive had was Pets at home back in April 2019, I managed to get on at £1.40/45 - a Canadian Pension company sold their stake of 50+ million shares and the price dropped 13% in a day. Everything indicated their business transformation was going well with sales + profits improving…current price is £2.75. I got off the wave a while ago sadly to buy my house.

I’m currently on the wave of Tullow oil, will be a long one I think

1 Like

Tullow is one on my watchlist. The drop was excessive. I can see that back up over a pound quickly if they can get the production level stable.

One good drill result and everything can change.

Or another bad drill and well, whoops

And thats the game :slightly_smiling_face:

I do like an oil company. I bought into GKP and have made a decent amount in dividends and on growth. Bucket loads of cash and strong fundamentals.

What are you using IG for? Just charts or is this their SB platform?

I have my ISA there with my main stockholding. I used to use them for SB but with the margin changes it just wasn’t worth it.

They offer Direct Market Access which has saved me thousands over the years.