Investing vs. Trading
Transcript of Investing vs. Trading
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Investor or Trader?Adam Wham
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What’s this about?
Why are you here
Trading on your own
Create opportunities
Active participation
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What this is NOT about
Finance/economics/news
See and forget
Gambling
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Investing
Buy and hold mentality
Fundamental analysis
Ignore short-term loss
Mutual fund & unit trusts
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Trading
Anything profitable
Price charts and technical analysis
Readily cuts losses
Proprietary trader, hedge fund manager
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Types of investing
Income investing
Value investing
Growth investing
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Types of trading
Day trading
Swing trading
Positional trading
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Which works?
Warren Buffet
Jesse Livermore
Risk management
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Now what?
Find what style suits your personality
Develop a trading strategy
Develop risk management
Develop trading psychology through practice
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Technical analysis
Study of historical price data to forecast future price movements
Mass psychology
Works well in liquid markets
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Risk management
Being the casino
A game of probabilities
Capital preservation
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Trading psychology
Talk and read about it
MUST take action and learn the hard way
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My style
Swing trading
Trend-follower
Cut losses quickly
Perfecting trading psychology
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What happens next
Set up platform
Necessities in technical analysis
Trading strategy
Risk management
Common mistakes
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Active participation
Weekly trading discussions
Members to present
Portfolio track record
Journals
Forum
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Excuses
“Passion” for the financial markets
Too busy
Lack of experience
I’ll get to it... after my exams
No money
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New
Downloadable platform
Techniques learned from mentors
Risk management by profitable traders
Real-time trading
New lifestyle
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Resources
• Babypips www.babypips.com
• Price Action Trading www.learntotradethemarket.com
• “How to make money trading” by Lex Van Dam