Trader or Investor?

My process involves buying cheap stocks with favourable outlooks and selling them on the first sign of trouble or if they become overvalued. It has worked well to date and I don't see why it won't continue to work. It means I have short holding periods (probably a few months on average) and end up buying a lot of dross since I don't focus solely on business quality. Quality is very important though and over time I have become more selective in this regard, reflected by the fact none of the stocks on my list of shame were purchased after 2017. I have often thought of myself as a fundamental trader rather than investor because of my short holding period and tendency to sell on any hiccup, temporary or otherwise.

I will stick with what works for me, but of course want to improve. One way to do so would be to reduce the amount I trade. I make lots of mistakes buying stocks and then immediately selling them because of insufficient work prior to purchasing (see here, here and here). I am updating my checklist to address this.

I also need to hold onto my winners for longer. To this end I will now sell for valuation reasons in three stages instead of all in one go.

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