Werner, I can't contribute anything to your long vs short debate. However since you are asking all forum members to respond, let me tell you that I am a novice (8 months) and am discovering that the medium term investing that I have been trying to implement is not as easy as I thought it would be. I will own up to a 10% loss.
I believe for these short term traders, they have the view of shares and profit, obviously profit is important, but my logic is that i buy businesses and instead of only looking at the bottom line, i like to compare year on year percent gains so that i can improve all the time.
Long term investor myself. Been here since 2006 and paid some early school fees (fortunately not too much) messing around churning, looking at warrants etc. These days and for the last 5 years I've stayed discplined, stopped churning and used a set methodology for determining value. I only own 8 individual stocks, all in different sectors: BIL, CFR, DSY, PNC, SHP, SOL and SPG locally. KO in the US. I try to keep the weightings consistant. Been tracking it the last 4 years using abacus performance calculator. 2010: 26.09%, 2011: 2.94%, 2012: 27.7%. This year my OST account has delivered a IRR of 34.3% this year. I dont have time to trade and I choose not to. I do have a system that I'd like to automate somehoe because I dont have the mental discipline or emotional fortitude to trade. So if anyone knows how to do this I'd like your advice
ok, this might not be phrased right, but as people like Buffett and Graham and what I believe, Investing is buying businesses after thorough research and analysis, and then holding it for extended periods of time. i believe the easiest way to judge the difference is to see what the primary focus is, investor i believe is after holding the business, with an interest in the business growing, run properly and having ones capital appreciate as a result thereof, traders are more bothered about the price, market psychology and price change and not really worried about the underlying business at all, they there to profit from price movement. hope that story makes sense.