Shareholder mindset = Positive mindset?
Based on shareholder mindset, I summarise 4 types of traders:
1. Day traders
Most common one is buy the share based on price (not the company fundamental). Their aim is to take profit at the shortest possible time. They are not gambler because the trading is strategic and it involves deep planning. They kept a strict exit plan (based on stop loss %) and prepare emergency fund ie don't all in.
2. ETFs traders
They have a higher volatility risk appetite and hold stocks for long term. They want to invest in many companies or regions by choosing ETFs stocks like S&P 500 ETF.
3. Dividend traders
They are long term bag holder because the plan is to profit based on dividend. The stocks that they pick are fundamentally sound companies and pay dividends well. It's like collecting rent periodically by owning property in the case is REIT stocks.
4. Value stock traders
They pick companies with sound fundamental and potential to grow. As long term bag holder (in term of years), they have vision that the stock will grow many folds in the future. Such investors usually have strong holding power and don't mind short term volatility.
Bottom line
I belongs to all the 4 types of trader mentioned above.
Before you trade, having a positive mindset, be it shareholder mindset, is important. I started with 7 rules of life (or investment). The worst is a gambling traders ie no emergency fund (all in your hard earn money) and no stop loss plan (just greed and fear). It is scary some traders don't know why they buy a stock and always ask questions in chatroom like "Will the price goes up (or down) today?" or "Should I buy (or sell) now at dip (or to take profit)? They usually ended saying the stock market is scam when losing all their hard earn money.
1. Day traders
Most common one is buy the share based on price (not the company fundamental). Their aim is to take profit at the shortest possible time. They are not gambler because the trading is strategic and it involves deep planning. They kept a strict exit plan (based on stop loss %) and prepare emergency fund ie don't all in.
2. ETFs traders
They have a higher volatility risk appetite and hold stocks for long term. They want to invest in many companies or regions by choosing ETFs stocks like S&P 500 ETF.
3. Dividend traders
They are long term bag holder because the plan is to profit based on dividend. The stocks that they pick are fundamentally sound companies and pay dividends well. It's like collecting rent periodically by owning property in the case is REIT stocks.
4. Value stock traders
They pick companies with sound fundamental and potential to grow. As long term bag holder (in term of years), they have vision that the stock will grow many folds in the future. Such investors usually have strong holding power and don't mind short term volatility.
Bottom line
I belongs to all the 4 types of trader mentioned above.
Before you trade, having a positive mindset, be it shareholder mindset, is important. I started with 7 rules of life (or investment). The worst is a gambling traders ie no emergency fund (all in your hard earn money) and no stop loss plan (just greed and fear). It is scary some traders don't know why they buy a stock and always ask questions in chatroom like "Will the price goes up (or down) today?" or "Should I buy (or sell) now at dip (or to take profit)? They usually ended saying the stock market is scam when losing all their hard earn money.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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butter : I am trying to b all of the above also
呢稱勿忘初心 : Individuals also belong to the above types of investment, are slowly fumbling learning
Travelforfreedom : I considered under item 1. Day traders + 3. Dividend traders + 4. Value stock traders.
Where possible, take dividends, once hit my TP, sell for profit. This way, proffit both strategy.
bullrider_21 : There are 2 types of TA traders. Swing and day traders. Swing traders trade the swings for a few days to a few weeks. The majority of TA traders are swing traders.
Day traders only trade intraday. They form the minority of TA traders.