sparkly wrote:hooverrl wrote:One need not be exclusively either a trader or a long-term investor. Some investors reserve a small portion of their portfolios for active trading and speculative plays -- their "mad money." Allows them to be responsible and still have a bit of fun along the way.
Love that manifesto, though. I want to print it out and tape above my desk!
True. Mine is 20% max.
But to combine trading and long term investing needs a very high level of DISCIPLINE. For most people, over excitement leads to gradual reduction of their long term percentage.
But if it works and you know what you are doing, what the heck! We can't all employ a uniform strategy. We all have different school of thoughts. The trick is to make yours work for you. If it doesn't, re-evaluate!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.