Showing posts with label problem solver on bond market swing. Show all posts
Showing posts with label problem solver on bond market swing. Show all posts

Saturday, April 11, 2020

Do I need to learn day trading as a long term investor?

April 12, 2020

Introduction


It is important for me to learn how to do day trading, so that I can learn basic things how to analyze one stock. As a long term investor, usually I do not need to trade very often; in other words, I cannot read the market as well.

Case study


Last month, on March 9, 2020, I had VAB.TO ETF over $20,000 dollars, the price of VAB.TO went up to $27.25, but I did not sell gain over $2000 dollars, on March 18, the price went down to $23.61/ share. If I practice day trading techniques very often, I believe that I will sell high at price $27.25, and buy low at $23.61. The price difference is $3.61/ share, and I have over 1000 share.



The market change of VAB.TO from March 10 to March 18 is $3.76 (March 10, $27.37, March 18 $23.61), 14%.



March 10, gain $1034 dollars, 
March 18, loss $2643.12 dollars,

If I learn how to do day trading, I will sell high on March 10, and then purchas VAB.TO on March 18, and then profit will be $3677.00 dollars. 


Lesson learned


I think that I should learn basics of day trading, so that as a long term investor, I can understand what is normal price of VAB.TO. When the market went crazy from March 10 to March 18, I can easily make $3677 dollars profit. 

I remembered that I woke up around 6:00 AM in the morning, and surprised that my bond has profit based on my mobile Jstock.