What are traders?

[vodoo]

Im actually reading "Trading in the zone".
But then i was asking myself the question:
What are traders?
In which stocks do they invest?

Are traders people who buy and sell stocks every day?
Or do they keep their stocks longer?
What do u think?
Thx

[spino1i]

And the answer is:

d) all of the above

[Sniper]

A trader is generally someone who is looking to take advantage of short term price changes (or lack thereof).

The specific type of trader in the broad trader category can be defined by the specific time frame (scalp, day, swing, etc) they are looking at, and other factors, including what specifically is being traded (stock, option, futures, commodity, etc)

[Mr. Now]

Traders trade.

Not all traders make money long term. Most traders become "investors" when a position moves against the trade in a substantial way.

It can be hard to understand the writing of Douglas unless you have substantial experience.

[Sniper]

[ QUOTE ]
Most traders become "investors" when a position moves against the trade in a substantial way.


[/ QUOTE ]

Mr Now, would you a agree that a "Trader" who falls into that category probably shouldn't be trading in the first place?... or at least has a "leak" they need to work on.

[pig4bill]

[ QUOTE ]
Traders trade.

[/ QUOTE ]

'Zackly. They don't invest. Investors want to own a piece of the company. Traders couldn't care less about owning the company.

[ QUOTE ]
Not all traders make money long term. Most traders become "investors" when a position moves against the trade in a substantial way.

[/ QUOTE ]

LOL, a.k.a "bagholders".

[ QUOTE ]
It can be hard to understand the writing of Douglas unless you have substantial experience.

[/ QUOTE ]

Mark Douglas? It doesn't help that he's not much of a writer either. His stuff comes off like a textbook, and more than a little arrogant.

[Sniper]

[ QUOTE ]
It can be hard to understand the writing of Douglas unless you have substantial experience.


[/ QUOTE ]

Douglas' books talk about psychology... while it may be harder to put yourself into the frames of mind he is talking about without a lot of trading experience (ie you've felt the stuff he talks about)... I think many of the poker players here will identify with some of the things he talks about, w/o any trading experience.

[Mr. Now]

Sniper,

Absolutely. We must to fold when we miss. This is essential.

See:
Disposition Effect- caused by a need to be right. This need can be very expensive.
http://disposition-effect.behaviouralfinance.net/


Loss Aversion-- aka "denial of reality."
http://en.wikipedia.org/wiki/Loss_aversion

[Mr. Now]

Mark Douglas built a large lifestyle of material consumption from trading profits, then he went bankrupt. Literally. He lost everything.

Then he came all the way back (in trading) after starting over with all-new beliefs about the market and risk.

Then he wrote his books.

Have you actually examined both of his books in detail, from front to back? Have you met the man?

Mark Douglas used to be very arrogant, and that is part of exactly how he went bankrupt. He describes all of this in detail, in his excellent books on trader psychology.

It can be difficult to fully understand the importance of his writing without extensive experience.

[Sniper]

Mark Douglas website