I’m having a bit of fun this month and conducting a survey to help understand people’s trading styles. If you would like to take part in the survey, you can sign up here.
Which Race are You Running?
Today we’re going to take a closer look at the 3 trading persona’s we’ll be identifying with the survey; the Marathoner, the Sprinter, and the Relayer. Remember that every runner has a different goal in mind so each utilizes a different training training strategy, uses different equipment, and works with a different mind set. The same holds true with investors!
In my mind, marathoners are the long term investors, Here are some critical distinctions for those who follow the “slow and steady wins the race” mind set:
- They hold positions for 6 months or longer
- They focus on the fundamentals of a stock using tools like Value Line, Barron’s and the WSJ
- This is a very research intensive type of investing. Marathoners are less reliant on technical analysis
- Trades are data centric so patience is a virtue
- Long term investing doesn’t require you to be active during trading hours
- Running a marathon takes a long time so don’t expect instant gratification
- Anyone can trade like this regardless of their portfolio size
- 75% of stocks mimic market trends so long term portfolios carry a low risk
- Mitigating your long term risk on a trade requires dollar cost averaging when there are price dips.
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