Know yourself ! Are you suitable to Invest or Trade ?

Lets start off with a Trader mindset, I categorised it 2 type
Novice Trader ( aka Gamblers)
1) A impatient person, he like to take profit as long as he sees profit (2 days~ 1 month).
2) Like to look at the trading screen a few times a day (nowadays with smartphone easier).
3) Like to listen to tips without analyse further.
4) Very excited on the market news/index high fluctuation and don't want to be left out. (Have herd mentality)
5) No trading plan, or with one but do not follow strictly.

Professional Trader (Aka seasoned trader)
1) Have gone thru the novice phase and have gain strong Technical Analysis knowledge.
2) One look at the screen the time he needs to enter and check on the progress once in awhile but not frequent.
3) Listen to tips but would scrutinise the recommended stock begin planning to enter.
4) Take the market news/index fluctuation  into account when planning his trade.
5) Follow strictly to his trading plan but may use different trading plan/strategies for different trades.

I would also categories Investor mindset into 2 type.
Amateur Investor (aka Aunties Uncles investor)
1) Very patient person, will keep his stocks for years if is negative but will take profit when profit >20%.
2) Does not look at the trading screen & still using remisier to ask on the stock prices.
3) Buy based on remisier/family member/friend recommendation.
4) Not much feeling in market news/index fluctuation/herd mentalities as they don't understand much.
5) No trading plan, all by experience / gut feel.

Professional Investor (Warren Buffet type ?)
1) Very patient person, may wait for years before taking profit.
2) Once bought, check on the screen once a day.
3) Do not listen to tips much but will follow a few good/Strong fundamental stock's business progress.
4) No feeling on the external market news as his main focus is the company business model, P&L, Progress & Growth. (Understand that the stocks price will go down according to market sentiments but believe that she will bounce back to a higher peak when sentiments improved )
5) Strictly follow his investment plan, if the fundamentals have change or growth has stagnant, is time to sell.


Well, from the above, have you ever wonder what type of person are you ?
And choosing the right strategies to suit your personalities will help you gain in the markets.
Hmmm..... I believe many people in the market are novice traders & does not think that having proper knowledge & strategies will help them gain in the market consistently(average in years) beating FD/bond rate (at least).

Note : In the long run, Novice traders will definite LOSE money while Amateur Investors may or may not earn money (depending on his/her wealth luck !), while Professional Traders / Investors is the ones who consistently earning money from the market. In our era, especially before year 2000, Professional Investors GAIN the most as you can see Warren Buffett has become the riches man in the world (comparing to all those who earn money from the market).

In order to be the 10% in the market who profited or not losing to the market comparing the 90%, one must be very firm on his strategies.

I myself is splitting my share investment portfolio into 60% Value investment & 40% Momentum play (trading). Given such bearish market situation, as in Malaysia market, we cannot short, gaining in momentum play would be a difficult task as we need to do counter-trend trading (higher risk, really need some luck here, haha ). And one should limit himself/herself to about 30%~40% of his portfolio in the market in order to preserve some capital for better bargaining when the market gets more hostile.