Grinder
Candlefocus EditorGrinders try to reduce their risk by carefully studying the market before deciding to make a move. Their goal is to identify stocks, debt securities, and commodities with the potential for favorable returns, even when the broader markets are moving lower. They strive to make small incremental profits from trading, buying and selling stocks and other assets at slightly better prices than their peers.
Grinding is a strategy for active traders who have time to research the market – and are willing to commit to making multiple trades each day. While this strategy can be more time consuming than some other forms of trading, it is often a preferred approach for those looking to minimize risk and avoid large losses.
Grinds can be successful in the long-term, but they determine their fate in the short-term. They usually balance risk and reward, meaning they can take higher levels of risk in order to achieve higher rewards. They are also more likely to opt for a buy-and-hold strategy where they buy a stock if they believe it can trend higher over a long-term.
Grinders may also utilize techniques such as trailing stop loss orders in order to manage risk and capitalize on any appreciating asset. This involves setting a predetermined “sell” point for certain shares so that any substantial gains that have been achieved can be secured.
Grinding is a lower-risk approach to investing and can be carried out successfully over a long-term. It is not suitable for everyone, however, and to be successful it means dedicating time to monitoring the markets as well as researching specific stocks and commodities. By utilizing risk-management strategies and demonstrating experience and discretion, grinders can reap the rewards of consistent, low-risk profits.