How should I keep churning my portfolio? trader or investor?

an investor is a person with a long-term horizon whereas a trader is one with a short-term horizon. In other words,a trader depends primarily on market prices for returns, while an investor depends on dividends.

Emotions play a significant role in the portfolio management process.  As investors think that the stock would perform good in long run, the “Investors”  tend  to non-action when asset prices decline. For the trader, as his loss tolerance level is lower than their risk tolerance level, the trader will sell the holdings.

I see that both of them have to have a risk a management system. I do not see any mistake when one is a investor in once scrip and a trader in another scrip. Even in the same scrip, you can hold up to a certain number of shares as investors and more than this number, handle the additions as trader. Effectively one should have a fundamental portfolio/Watch list where one needs to be an investor and a risk portfolio/watch list where one needs to be a trader.

Some cautions:

  • As an investor, when the markets crash, do not go about averaging the stocks that you already bought, as you do not know the bottom yet.
  • Do not rely on analysts and research reports entirely, as analysts are heavily influenced by what investors believe and investors are doing. I find that the number of research reports is lower and I have stopped buying magazines that I would buy earlier to learn on markets and Funds as they do not give much information, as when the markets were high.