Possible confusion due to Strategy and Timescale?

SanaSana

Newbie
Messages
1
Likes
0
First off thank you in advance to any respondants.

My question relates mainly to Investing vs Speculation, and their respective timescales.

I would like to know whether ideas that are beneficial to one strategy and timescale (and are also taken to be beneficial on a general basis), could be detrimental to another?

i.e. If research on market conditions indicates (for example) a bullish environment in the medium-long term, could using this information to guide short term trade direction, result in misdirection?
(even though knowing your market's conditions is generally taken to be a good thing)

If so, how much weighting should be given to seemingly contradictionary factors before they become noise?

Also does this possibly explain the "strictly tape and volume" stance of some day traders?
 
Interesting question. I think, yes, there can be conflation between the two which could potentially damage one (or even both) simultaneously.

I take a black-and-white view of the question and see one as having no relation to the other. I'm happy to be criticised on this.

1. Investment - the time-frame for each should be multi-decades: an investment that is not planned to last for at least 2 decades is not an investment.

2. Speculation - any single position that runs longer than a month is not trading.

3. Everything in between is neither, its just "churn" for the benefit of the financial industry.
 
Top