[HOME]
Sign-up for our 21 day free trial!

The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)


1. Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.

2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.

3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.

SEE OUR TOP PICKS FOR 2006...

Active Trading vs. Buy and Hold

All investors must reevaluate and refine their investing styles and strategies from time to time. As we gain investing experience and knowledge our view of the market is likely to change and most likely broaden how we envision the extent of our investing capacity. Those who want to try to outperform the market (that is realize returns greater than the market average) might consider an active trading strategy such as our style here at STHQ even if only for a portion of their portfolio. In this series this week we will explain what active trading is how active traders view the market their tools and investment vehicles and finally the risks associated with this style. 

The best way to understand active trading is to differentiate it from buy and hold investing. Buy and hold investing is based on the belief that a good investment will be profitable over a long period of time and ignoring daytoday market fluctuations. Using a buy and hold strategy this kind of investor is indifferent to the shortterm for two reasons: first because they believe any momentary effects of shortterm movements really are minor compared to the longterm average and second because shortterm movements are nearly impossible to exactly predict. 

An active trader on the other hand does not want to expose their stocks to the effect of shortterm losses or missing the opportunity of shortterm gains. It is not surprising then that we as active traders see an average longterm return not as an insurmountable standard but as a runofthemill expectation. To exceed the standard or outperform the market we realize that we must look for the profit potential in the market's temporary trends which means trying to perceive a trend as it begins and predict where it will go in the near future. 

Even though the market moves upward over time it experiences many smaller trends in both directions along the way and this is what we as short term traders try to exploit while the long term investor is content to stand pat and ride it out.  Traders are active because they want to capitalize on the markets short term movements.  For us the importance of the market's shortterm activity is magnified while the long term investor does not want to take advantage of every move.  What the long term investor does not realize is these market movements offer opportunity for accelerated gains over short periods of time. 

A greater number of trades do not necessarily equal greater profits. Outperforming the market does not mean maximizing our activity it means maximizing our opportunities. Maximizing returns or outperforming the market is not just about reaping profits; it is also about avoiding losses. In other words we traders will use technical analysis to spot any signs that the stock is about to take a turn in an undesirable direction. When these signs occur we know that it is time to exit the trade and use the proceeds in another trade.  A longterm trader on the other hand stays invested in the stock if they have confidence in its value even though it may be experiencing a downward shift.  The buy and hold investor must tolerate some losses that the trader believes are possible to avoid.







Copyright 2003-2006 StockTradersHQ.com is owned and operated by The Winners Edge a subsidary of DMC Systems LLC. All rights reserved.   This web site is optimized for Internet Explorer 5.0 or greater!DISCLAIMER  [Articles| Bulletins| Charts]

^GoTo Top^

 
Buy Outlet Canada Goose Jackets Parka Online Buy Replica Prada Clutch Bags Online Buy Replica Hermes Birkin Bags Online Buy Replica Celine Clutch Bags Online Buy Replica Christian Louboutin Shoes Heels Online prada bags replica celine bags replica christian louboutin shoes replica hermes birkin replica canada goose jackets outlet Replica Canada Goose Jackets Parkas Coats Vests Outlet Sale Replica Hermes Birkin Bags Kelly Handbags Replica Prada Clutch Bags Messenger Handbags Outlet Sale Replica Celine Luggage Tote Bags Replica Christian Louboutin Shoes Heels Sandals Pumps Outlet Sale Canada Goose Jackets Sale Prada Mini Luggage Tote Bags Sale Hermes Birkin & Kelly Bags Sale Celine Mini Luggage Tote Bags Sale Christian Louboutin Shoes Heels Sale Celine Bags Luggage Tote Mini Outlet Sale Prada Bags Clutches Purses Outlet Sale Canada Goose Jackets Outlet Sale Toronto Christian Louboutin Shoes Boots Outlet Sale Hermes Bags Birkin Purses Outlet Sale Canada Goose Jackets Canada Goose Jackets Outlet Authentic Canada Goose Outlet Buy Canada Goose Outlet canada goose outlet cheap canada goose sale Canada Goose Online Jackets Canada Goose Parkas Outlet Buy Canada Goose Parkas Cheap Canada Goose Jackets Canada Goose Outlet online Cheap Canada Goose Men Jackets canada goose cheap canada goose men outlet canada goose outlet canada goose jackets sale Official Canada Goose Jackets Men Online Shop Official Celine Bags Luggage Tote Mini Online Shop Official Prada Bags Luggage Tote Online Shop Official Hermes Bags Birkin 30Cm Online Shop Official Christian Louboutin Heels Shoes Online Shop Designer Christian Louboutin Shoes Heels Sale Outlet Designer Celine Bags Luggage Tote Sale Outlet Designer Hermes Bags Birkin Sale Outlet Designer Prada Bags Messenger Sale Outlet Designer Canada Goose Jackets Men Sale Outlet Cheap Canada Goose Parka Canada Goose Jackets Online Hermes Bags Birkin replica Prada Bags Clutch Sale Replica christian louboutin shoes outlet Canada Goose Men Jackets Outlet celine Luggage Tote bags Canada Goose Outlet Store canada goose outlet Hermes Birkin Handbags Outlet Sale Celine Handbags Trapeze Outlet Christian Louboutin Shoes Outlet Sale Prada Handbags Clutch Outlet Sale Canada Goose Parka Outlet Sale canada goose mens parkas Christian Louboutin Shoes Outlet Celine Micro Luggage Tote Bags Outlet Canada Goose Jackets Men & Women Outlet Prada Clutch Bags Outlet Hermes Birkin Bags 30Cm Outlet hermes replica birkin, celine outlet online, Replica bags, outlet canada goose, Canada Goose Clothing Outlet Uk Canada Goose parka discount cheap Canada Goose cheap louis vuitton Moncler Taille louis vuitton Discounted Canada Goose doudoune moncler Canada Goose Outlet Jackets