What kind of trader am I?

I've been trading for 3 years. Every year I've made mid to high 5 figures. I do not trade full time. What I do is I spend about 3 hours a day researching into multiple companies. I use google, yahoo finance, and a bunch of other information including balance sheets, news, etc. Then I buy the stock and hold anywhere between 1day(min.) to 6 months (longest). I was asked today by a few friends what type of trader am I? I have a full time job and just trade for extra income. I usually don't look at charts much neither do I buy options or futures or use any margin.

8 Comments
 

Simple. A good retail trader. I see you're in S&T so I assume your friends who know you're a good trader won't get you in trouble?

Invest first, investigate later.
 

No, most of my friend do not trade. I only know one friend that trades actively and he doesn't like the way I trade. He trades options nonstop and said that the leverage is more profit in the long run. I tried to get into it, but the information in option trading overwhelms me so I just stick to doing what I do best.

 
Best Response
Chengv

No, most of my friend do not trade. I only know one friend that trades actively and he doesn't like the way I trade. He trades options nonstop and said that the leverage is more profit in the long run. I tried to get into it, but the information in option trading overwhelms me so I just stick to doing what I do best.

What I meant was if you're really in S&T in a bank, trading your p/a is prob not a good idea. Think conflict of interest and the whole lot of trouble associated with it. Also is there really a point trading retail options nonstop? You're saying your friend is managing his greeks properly so that he needs to trade options so frequently?

The way most retail investors think of leverage is interesting. How many of them really know how to properly calculate the leverage of options, especially with a few legs on the book? Try to ask your friend next time. If he knows and can explain it well enough, you might consider learning how to trade (retail) options from him.

Invest first, investigate later.
 

As @LCYM said, you're a good retail investor/trader. Bringing in mid to high 5 figures doesn't say much, if the capital you put to use was 8 to 9 figures ( just messing with you)

CNBC sucks "This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
 

Haha, no I make about mid to high 5 figures yearly off trading. I started with about 6,000 in a regular account. Never used margin nor really understood it.

 

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