Читать книгу Taming the Lion - Richard Farleigh - Страница 8

It is probably best to clarify at this early stage that I believe trading and investment are increasingly similar. Traditionally, there is a distinct difference between the two. Investment is putting wealth into different markets with a long term view. Adjustments to the portfolio are made infrequently and at a slow pace. Trading, on the other hand, is holding positions for shorter periods of time, looking to make a faster profit, and then exiting. Investment tends to be buy and hold, whereas trading tends to be based on temporary reasons with an exit when those temporary reasons have dissipated.

However, successful investment increasingly recognises that the buy and hold strategy may not work. It may require a more timely response to what’s happening in the markets, since they can move a long way in a fairly short period of time.

Equally, as we will see, many short term trading opportunities in the markets no longer exist, and now the best opportunities may have a time horizon that extends into months and even years.

So, in these Strategies, I will not try to distinguish between trading and investing, and I will use the terms interchangeably.