I just realised something. If you’re a profitable trader and investor, the trading can help your investing. -
- you dont take as much risk in your investments. Your risk appetite is whetted by the trading -
- you develop better nerve to hold your investments
Longer. Because you’re not so anxious to be profitable quickly in your investments. -
- you’re not as anxious when your high probability investment bets have drawdowns, because you’re having money to average down through your trading profits. -
- TA knowledge
Helps you to time your entries and (if needed) exits from your investments.
Some thoughts on the ‘miss the worst days’ vs ‘attend the best days’ dilemma- a 🧵-
The best days of the market usually come as ‘bear market rallies’.
Purely by logic (leave aside behavioural science for the moment), its better to miss the worst days of the market, rather than attend the best days and suffering the bear market. Also remember-