Or - investments vs trades. The recent situation in Apple has me thinking about a classic trading conundrum - what to do when you think the short-term outlook is bearish, but you think the long-term is bullish. For example, let's say you are bullish on the investment outlook over the next few years, relative to the valuation; but you see that the recent market action has turned bearish. There was a similar dilemma in late 2008 - stocks were very cheap but the market action was still bearish until March 2009. There seem to be a few main options: 1) Purely trade it, have no long-term/investment positions. In this case, it would mean shorting or at least being flat as long as the market is acting weak. This has the advantage of clearly defined risk, and no need to experience extended losses during market swoons. However, this comes at a cost of not being able to profit from long-term moves, or attractive investments. A great example is gold, I was bullish long-term for about the last decade or so, but did not fully capitalise because for long periods the market action was neutral or bearish, and sometimes I missed buy signals through inattention or simply not having enough clarity & conviction that now was time for the next leg up. 2) Purely invest - ignore the market action. This seems silly for any trader, and only makes sense for a pure investor. In any case, it has potential for large drawdowns. 3) Do a mix. E.g. overlay your investment/long-term view with short-term view. Example: if you are long-term bullish, then be flat if you are short-term bearish; be long if you are short-term neutral, and be long more if you are short-term bullish as well. The problem with this approach is it is quite easy to sell out for short-term reasons, then fail to get back in; or to stay in a poorly performing position because of a long-term view. 4) Treat them as separate positions. Have a long-term/investment account, and treat those plays as totally different to your shorter-term trading. The problem here is you could see bearish price action, but not enough conviction to go short, and yet you are still long-term bullish - so you still take a loss on the investment side despite correctly identifying a bear trend/bear market. In this case it would seem to make sense to limit your investment size to a modest amount, given the potential for being long during a possibly very large drawdown in any given position (or group of positions e.g. stocks in 2008). The lowest stress approach seems to be to stick to it as a pure trade. But I'm uncomfortable missing out on potentially large long-term gains just to avoid a few challenging trading decisions along the way. The other appealing (but difficult to manage) alternative would be to have investment positions, but to jettison them if the market action/environment becomes outright hostile to them, then re-establish the positions as soon as the market environment becomes neutral or positive. There is potential for whipsaws and mistakes, but if the trading and investment process are both net profitable and have good risk management, this should perform best. More work but more reward. Any thoughts? I'd be especially interested in any real life examples people had experience with. I may list a few later on this thread that I tried and failed or succeeded with myself.