Editor's Note: During 2024's historic bull run, while most investors were celebrating 20% gains... a unique trading strategy quietly generated a 274% return according to extensive backtesting... outperforming the S&P 500 by 9X. But here's what's truly remarkable... During the brutal market crash from November 2021 to June 2022 - when most portfolios were bleeding red - this same strategy could have delivered an even MORE impressive 301% total return. This Wednesday, May 14, Oxford Club's Chief Income Strategist Marc Lichtenfeld will reveal this "all-weather" trading approach for the first time - showing you exactly how to implement it every single week, starting as soon as next Friday. Space is limited for this free online "Special Situation Event." Reserve your spot now. – Ryan Fitzwater, Publisher Marc Lichtenfeld, Chief Income Strategist, The Oxford Club In my 20s, I started out on a trading desk where traders rarely held any positions overnight. They were day traders who got in and out of their trades in a matter of hours - and sometimes minutes. As my career evolved and long-term investing became my focus, I shifted my goal to owning "Perpetual Dividend Raisers" for multiple years. Now I find stocks that my readers should be able to hold indefinitely as the companies raise their payouts every year. But that's investing. On the trading side, it's appealing to be in and out quickly. With some stocks, you have to wait a few weeks for a catalyst or technical pattern to play out. And that's fine. There's nothing wrong with earning double- or triple-digit returns in a few weeks or even months. Most investors would be thrilled with that kind of performance. However, some traders enjoy the action and don't want to wait weeks for the payoff. They prefer to be in and out in a matter of days or sometimes within the same day. While trading is more speculative, there are some risks with long-term investing that don't exist with trading. For example, you don't have to worry about getting overly attached to a stock because you've held it for a long time or because you believe in the news story surrounding it. Intermediate-term traders typically own stocks for a few weeks or longer. They're waiting for a story to play out, such as an earnings report, a drug approval or a completed chart pattern. They'll usually set stops that give the position some room to move. That way, they won't get shaken out by market noise, but they also won't suffer too large of a loss if the trade goes against them. Shorter-term traders will hold a stock for a few days or less. They're usually exploiting strong moves in the market or in the stock itself. They'll typically take smaller (but perhaps more frequent) losses in exchange for more frequent trading opportunities and wins. When deciding what type of trading style is best for you, ask yourself the following questions... |
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