Investing versus trading

Are you a trader or an investor?

Investors make money for themselves.

Traders make money for their brokers.

&quot;In investing, always remember that Rome was not built in a day.&quot;

&quot;In trading, always remember that Hiroshima and Nagsaki were destroyed in a day.&quot;

Here are 10 essential lessons to always keep in mind:

1️⃣&#160;Let your winners run

Selling your winners too early is a big mistake.

Selling companies that are doing well and purchasing ones that are faring poorly is like watering the weeds and cutting the flowers.

2️⃣ Don&#39;t invest in disruptive sectors

Disruption is the worst enemy of every quality investor. 

Invest in companies that will still be in business 10 years from now.

3️⃣ Run your own race

Don&#39;t compare yourself to others.

Every investor is unique and has its own goals.

4️⃣ Focus on the moat

A sustainable competitive advantage is essential for quality investors.

You avoid a lot of value traps when you only invest in wide moat stocks.

5️⃣ Valuation matters

Even the most beautiful companies can be terrible investments if you pay too much for them.

Try to buy wonderful businesses at fair prices.

6️⃣&#160;Focus on management

You don&#39;t want to invest in companies where management puts their own interest above the one of shareholders.

Focus on companies with high integrity.

7️⃣ Never panic buy or sell

Always try to stay rational.

The worst time to make an investment decision is when you&#39;re panicking.

8️⃣ Always take responsibility

Never blame others or external factors for your investment mistakes.

Focus on process over outcome and take responsibility.

9️⃣  Be patient

The best investors trade very little.

Don&#39;t be in a rush to get wealthy.

&#128287; Focus on the fundamentals

Most stock prices fluctuate with more than 50% each year.

But this doesn&#39;t mean the value of the company fluctuates with 50% per year.

Always focus on the evolution of the intrinsic value of the companies you own.

Source: Chris Quinn

Investing versus trading

Are you a trader or an investor?

Investors make money for themselves.

Traders make money for their brokers.

"In investing, always remember that Rome was not built in a day."

"In trading, always remember that Hiroshima and Nagsaki were destroyed in a day."

Here are 10 essential lessons to always keep in mind:

1️⃣ Let your winners run

Selling your winners too early is a big mistake.

Selling companies that are doing well and purchasing ones that are faring poorly is like watering the weeds and cutting the flowers.

2️⃣ Don't invest in disruptive sectors

Disruption is the worst enemy of every quality investor. 

Invest in companies that will still be in business 10 years from now.

3️⃣ Run your own race

Don't compare yourself to others.

Every investor is unique and has its own goals.

4️⃣ Focus on the moat

A sustainable competitive advantage is essential for quality investors.

You avoid a lot of value traps when you only invest in wide moat stocks.

5️⃣ Valuation matters

Even the most beautiful companies can be terrible investments if you pay too much for them.

Try to buy wonderful businesses at fair prices.

6️⃣ Focus on management

You don't want to invest in companies where management puts their own interest above the one of shareholders.

Focus on companies with high integrity.

7️⃣ Never panic buy or sell

Always try to stay rational.

The worst time to make an investment decision is when you're panicking.

8️⃣ Always take responsibility

Never blame others or external factors for your investment mistakes.

Focus on process over outcome and take responsibility.

9️⃣  Be patient

The best investors trade very little.

Don't be in a rush to get wealthy.

🔟 Focus on the fundamentals

Most stock prices fluctuate with more than 50% each year.

But this doesn't mean the value of the company fluctuates with 50% per year.

Always focus on the evolution of the intrinsic value of the companies you own.

Source: Chris Quinn