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