Point 1: you must not mix trading with long-term investing. These are two different approaches. One does not outweigh the other.
Point 2: too much subjunctive in your return expectations.
The "stock market rule of thumb" you mention refers to long-term strategies, which many unfortunately do not follow through with consistently, often do not deal with their investments intensively enough or "overthink" them too much and then throw a lot of things overboard again. But this has nothing at all to do with trading, as the holding period is inevitably shorter and "back and forth" can happen as a result.
The long-term strategy refers to "investing". The short-term strategy refers to "trading". Therefore, keep the terminology and strategies clear.
Point 2: too much subjunctive in your return expectations.
The "stock market rule of thumb" you mention refers to long-term strategies, which many unfortunately do not follow through with consistently, often do not deal with their investments intensively enough or "overthink" them too much and then throw a lot of things overboard again. But this has nothing at all to do with trading, as the holding period is inevitably shorter and "back and forth" can happen as a result.
The long-term strategy refers to "investing". The short-term strategy refers to "trading". Therefore, keep the terminology and strategies clear.
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@TheAccountant89 Thanks for the feedback! You're right about the terminology, of course!
Yes, the expected return is of course just an extrapolation - but a situation like this happened to me twice in the last month - so I'm trying to reflect on whether it might make sense / be a strategy to focus on smaller price increases, but with a higher frequency?
Yes, the expected return is of course just an extrapolation - but a situation like this happened to me twice in the last month - so I'm trying to reflect on whether it might make sense / be a strategy to focus on smaller price increases, but with a higher frequency?
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•@ag84 Perhaps you also need to gather your own experience here. But I suspect that this will not work out 1:1. Even if you achieve a 5% return in 9 out of 10 cases, it is quite possible that a single trade can ruin the entire return (even a stop loss does not protect you from everything). Don't get me wrong, you can also make a return with trading. But it's just not as easy as you might think.
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