Why We Are Traders And Not Investors Friday, January 06, 2012 by David Grandey of All About Trends

One look at the chart of VHC below tells you why we are traders and not investors: 

 

   

Each of the pink Pullback Off Highs lines were buying opportunities: 

 

Trade 1: Bought 300 shares at $21.64, sold at $24.23 -- total profit of $777 or 12%

Trade 2: Bought 300 shares at $21.70, sold at $25.69 -- total profit of $1,197 or 18.4%

Trade 3: Bought 300 shares at $24.50, holding at $26.50 -- total profit so far of $600

 

Total gains: $2,574!

 

If we were investors though -- we would have bought 300 shares at $21.64 and at $26.50, would have a gain of just $1,458.  We'll continue to be traders and enjoy the extra $1,100!

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Recent articles from this author

• Don't Let Fear Keep You From Making Great Trades - Thursday, April 26, 2012
• Here We Go! - Thursday, April 19, 2012
• When AAPL Sneezes The Whole Market Catches A Cold - Monday, April 16, 2012
• Why We Don't Use The 7-8% Stop Loss Rule - Friday, March 30, 2012
• Market Higher Or Lower? Does It Really Matter? - Thursday, March 08, 2012

About the author

All About Trends is a subscription based newsletter service focused on helping individuals secure consistent profits in the market by trading what they see, not what they think, hear or fear.

In the stock market, there are only 3 things you need to know:

1. Uptrends and how to trade them
2. Downtrends and how to trade them
3. Changes In Trends and how to identify them

We'll teach you:

1. Whether You’re An Investor Or A Trader, All Entry Points Are The Same
2. How To Buy Stocks At Alternative, Risk Adverse Entry Points
3. How To Short Stocks To Maximize Returns
4. When To Sell Your Winners
5. How To Focus Your Goals For Consistent Gains In The Stock Market
6. What Just $500 A Week In Returns Can Do For You
7. Proper Risk Management
8. How To Set And Manage Stop Losses

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David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains.  A successful canslim-based stock market investor for the past 15 years, he has worked for Meriwest Credit Union and Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.