QUOTE(Boon3 @ Jul 10 2021, 11:23 AM)
Yup. Done and tested so many times during my paper trading days.
You cannot simply, simply trade with head stuck up in own sss....
Whack this stock, whack that stock .... forehand smash, backhand smash, under the legs also you wanna smash....
laws of probability is that you will play the losing game...
and just like passive investing, one of stuff that makes most average/lousy is over diversification.
Too many stocks...
and end of day... like the horny old man.....
you ain't gonna get no satisfaction....
trade only when it makes sense to tade...
and do not trade because you feel you need too......
and this is what the other old man really teaches...
wait for the big fat pitch....
the one you ain't gonna miss.......................
trading all those average stocks....
will only get you average returns and if luck ain't on your side....
clearly you gonna lose.
ya, used to think that diversification is the biblical mantra to guard us against the risk because that's what preached to us, long term + diversification + don't trade + etc
trade and invest do not have much differences like you've mentioned multiple times before this, we have to find the best, strongest stock with the best possible entry after studying the past, sit and wait for the big fish
how about those trade with systems? taking smaller but frequent profits with very specific setups within a range of 1 - 4 stocks, cut loss quick, add into strengths fast, multiply the smaller gains and compiling them into big ones? some by doing this have handsome gains - discipline