Every trader will have to wrangle how to avoid eating dirt in bull markets while the buy & hold crowd has it made in the shade. I deal with this by trading across shorter & longer time frame. Also trading against a few core positions. History has not been kind to markets turbo charged by Fed/central bank liquidity, they go from boom to bust. Near the tops investors always think this time it's different, than they end up losing it all & than in the big panics from averaging in on the way down. We had the most hated bull mkt of all times, it lacked public participation up until March, the public is now in big time - a proper bear demands this.
an excuse. I bet more money has been lost trading than made; and more money has been made than lost investing. traders by in large lose money: much of it goes to the big dogs and the rest goes to the investors in the form of mispriced assets. warren buffet has made billions buying when traders push stocks down to stupid levels.
Doubt it. My gut feeling, nothing more, is the masses of investors and traders equaling provide the profit of the few.
Interesting, I had a block Lehman at $3 on a Friday thinking it my be a investment. Trader inside said “Get the hell out of it”! I did before the Close. Monday it was $.10, yes trading is different. ZZ best taught me a hard lesson.
There is a reason for the expression - its a trade until you are in the hole, then it is an investment. I did that once. Once was all I needed, to learn the value of a stop loss.
I wonder how many traders turned into investors when a trade ended up going against them. I agree that traders are probably worst off because they keep trading, it's a tough way to make a living. Where as investors just sit with their losers and hope. Eventually they might get back to break even (If they were not in Nortel Or Enron). You can mention Buffet but there are also big name traders.
I have to admit I am frequently in that predicament but, lucky for me, I only started trading in 2020. 100% of my "stuck high" turned into a profit within 3 months. Sure, I was looking for a same day or couple days trade and my cash was held up far longer than I wanted, but ultimately it's still cash in my pocket. My longest hang ups have been with TSLA and AMZN!