A Trader with an Investment Mindset

Invest in good stock...

Being a finance student, I have always been told that investors make much more profit compared to traders in the long run. 

In a sense, that statement is apparently true. If you take the historical gain reference of traders vs. investors, the latter will come triumphant without any confusion.

But remember, few traders make much more profit compared to investors. 

For the traders, the profit curve is seemingly positively skewed, only a few can truly make a profit, but most of them lose money and cancel out the average profit.

For the investors, the profit curve follows a normal distribution and returns an average profit to the clients in the long haul.

And most importantly, it is always the small ticket-sized shares that give you the best return.

For instance, a stock priced at BDT 10 has the potential to go up to 20 or 30 TK, giving you a return from 100% to 200%.

But imagine a good stock that is already priced at BDT 600, how much can it go up?

I always calculate the stock market from the perspective of percentage gain, and I like to call myself a Trader with an Investment Mindset.

I don't like to hold for the long term, neither do I want to get involved in regular trading. I buy small ticket-sized shares in the economic downturn and forget about those until the bullish period comes.

I want to buy small ticket-sized shares, wait patiently, and watch when the market goes bullish.

The stock market will definitely go bullish anyway, and if the small ticket-sized share is of a reasonably good company that will stay in the business for the next 5-10 years, you will not certainly lose money. But, you have to keep the patience of riding the wave of the stock market. When the index goes up, you can expect a return as well.

Disclaimer: this is my school of thought, I don't recommend anybody to follow me. Also, I haven't got the opportunity to invest in big numbers due to the lack of capuital. Hence, I don't know whether my assumption is true or not.