Roberto Anzellotti @IlMatematico: "INVESTOR vs TRADER: Two Worlds..."

Italy

INVESTOR vs TRADER: Two Worlds Compared I often read sentences like: "My portfolio is up 4% in the past day! My portfolio was down -4% in May!" Could this information be worth anything? Can it give you an idea of how good a Popular investor is? In the unlikely event that you are interested in my opinion, the answer is "NO!", and the flaw is in the time frame we are considering. The timeframe makes all the difference. #️⃣ The short timeframe is the reign of the TRADERs. A 𝐓𝐑𝐀𝐃𝐄𝐑 buy/sell an asset to resell it within a few seconds/minutes/hours or at most a few days. The aim is to make a speculative trade where the asset is traded rapidly to make a profit. 𝐓𝐑𝐀𝐃𝐈𝐍𝐆 is a zero-sum game, where for every euro gained, someone somewhere has lost that same euro (...and usually the trader that wins is the big corporation with powerful bots). #️⃣ Long-term is the world of INVESTORs. An 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 buys "pieces of a company" or a "pieces of a market" (e.g. $SPX500 ) or $NSDQ100 with the aim of participating in the profits and growth that this company will have over time. Investing is a positive sum game and anyone who participates with intelligence and above all patience will sooner or later see his gain. Learn to distinguish between the two terms and between the two activities that are completely different things: -> TRADING is an activity that makes you compete in a crowded arena where 2 out of 10 participants take all the loot and everyone else loses. It is an arena where you cannot afford to be an amateur because it is a game of everyone against everyone, and it is a game that does not allow you to dedicate yourself "in your free time" because it is a full-time job, extremely demanding. It is not impossible to win, but it is very difficult and few succeed. -> INVESTING is a non-competitive activity, where you do not compete against others to grab scarce resources, but it is a place where you become a partner in a company and then wait for this company to divide its profits with you. You just have to buy and wait. If you learn to be patient, in INVESTING you have done 90% of the work. So if you want some advice to make your life easier: stop being a 𝐓𝐑𝐀𝐃𝐄𝐑 (stop thinking SHORT TERM) and learn to be a 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 (think LONG TERM) . I am @IlMatematico, and through my algorithms I try to extract value from the markets. Add me to your watchlist to stay updated on all my news and all my movements on $BTC , $SPX500 and $NSDQ100 !

Not investment advice. The author may have financial interests in the mentioned instruments.