Trading in Stocks Short Term Style

By Justin DeMerchant

There has always been a movement by people to "own" stocks. Really in my professional opinion that is the absolute wrong approach. Stocks are for trading, not for owning. You can make a lot of money trading stocks, and lose a lot of money owning stocks. I think people should look at stocks as an investment, and unless you can buy a huge stake in a company and exert some influence over the operations you shouldn't think you "own" the company or any piece of it.

Far too often people decide "Hey, I like this company. I like the things they do." and so they won't sell their stock in the company because they want to support it. This is foolish. The company doesn't care about you, and you shouldn't really care about it. Being emotional is for relationships, and make no mistake, you are not in a relationship with a company.

People need to stop and think with their brains more often and that is why rules based trading is so smart, and while stock trading programs can help a lot of people in making money. This is a business and needs to be treated as such.

Short term trading basically encourages people to take up an investment only as long as it is immediately profitable. If a stock isn't going to make you money RIGHT NOW then sell it, buy something else, and then if you think the first stock is going to grow in value later you can buy it then. Stocks are money, not lovers. Be smart and you'll make money.