Gunslinger
Candlefocus EditorGunslingers are traders or portfolio managers who are willing to take risks in the market in order to potentially generate higher returns. Generally, gunslingers are characterized by their aggressive and volatile positions in the market for either long or short stints. These activities are especially pronounced when market conditions are favorable or unfavorable, with gunslingers either sell when market conditions are favorable, or buy when it is unfavorable. The gunslinger approach can be distinguished from classic buy-and-hold investing by its rapid-fire transactions. That is, gunslingers tend to move either in and out of their positions very quickly to capitalize on short-term opportunities or to limit risk exposure. Gunslingers are also often characterized by their secretiveness, often not sharing details about their strategies or positions with an aim to turn a higher profit.
Gunslingers often use high levels of leverage and risk. A key element of the gunslinger approach is market timing; that is, being able to correctly predict when market conditions are going to be favorable or unfavorable and to take advantageous positions when the time is right. Gunslingers also often use techniques such as derivatives and short selling in order to take a larger stake in the market.
Overall, gunslingers are traders or portfolio managers who are willing to take higher risks in the market in order to try and generate above-average returns. These risks can be based on market timing, derivatives, short selling, or leverage, but can also lead to large losses very quickly if market conditions don't go as expected. It is important that investors, whether they are experienced in the market or not, to utilize caution if employing a gunslinger's approach. Oftentimes, patience is more important than risk-taking, and investing for the long term is sometimes the best strategy.