In this podcast, Karim Nurani welcomes successful day trader, Cameron Newell and discusses the emotional connection of investing, managing multiple portfolios, market volatility, and long-term strategies for inventor success.
In this podcast, we explore four major themes:
In public market trading, it’s useful to keep portfolios separate, so that different strategies can be consistently applied. Having three accounts seems quite manageable. Use one for ongoing dynamic day trading activity, and a second one for swing trading, where various disciplined buy/sell rules and analytics can be applied. The third account is for a long-term portfolio, where buy-and-hold strategies can be applied over months or years.
A lot of volatility in stock prices creates a lot of opportunities, which in turn creates a lot of potential profit. But a lot of time and energy needs to be spent learning about these stocks, and constantly monitoring them, because they’re the ones where the gains – and losses – happen the quickest.
FOMO And Emotions
It’s important to understand that size is an important piece of trading. The more money that investors feel they’re missing out on, the more likely they’ll react emotionally. No matter how hard one tries, larger exposures are always going to provoke that little bit extra emotion.
The key for successful long-term trading is to learn a lot about the company and the employees, and figure out where they’re headed. People often say the market prices itself six months ahead of time. So, long-term investors need to truly believe in the company’s vision and its future path. it’s not just about where they’re at right now.