The greatest trading lesson from dead investors

A TRADING LESSON FROM THE DEAD…

NB: The lesson from the short piece below is not time-bound. As a trader or an investor, the more patient you are, the fewer trades you open, the less you risk, the longer your holding periods, the more profitable you will become. So, permanent trading and investing success is a long-term objective, not a short-term goal. There is no way around this fact

What I’m about to share is one of the strangest results from a trading study that I’ve ever come across…

It was a study conducted by an online stock broker on their clients who held share portfolios.

And they wanted to analyse the common traits shared by the top 10% of their clients.

Among their most successful clients, one peculiar trait stood out.

It’s that most of these top-performing portfolios belonged to clients who weren’t actively managing their accounts.

In fact, most of these clients were dead.

Yes, you read that right… Most of the top 10% were no longer alive.

Their portfolios had been left untouched, allowing the shares to appreciate steadily over time.

But despite how unusual this finding was…

There’s still an important lesson in this observation.
And that’s the significance of what a long-term perspective can do for your profitability.

Even from my own experience, I’ve completely stopped day trading over the last 5 years.

And I’ve seen profound improvements in my profitability by holding onto trades (and adding into winners) for several weeks and even months.

The same thing’s been happening with members of my trading community.

One member recently told me that he closed out a 35R trade on Gold.

And with R multiples that large…

You only need a couple of trades like that in an entire year to make an impressive annual return.

That’s why I adopt this style of trading inside my community.

Author: Charlie Burton

Source: Charlieburtontrading

[xyz-ihs snippet="Markets"]