Snipers vs Investors

Investors search intensively for a diversified basket of stable and prospective stocks, make thorough research on selected counters before entering with a long term bullish view. They will not be affected by minor news and rumours floating around daily as they are not concerned with short term fluctuations.

Snipers search intensively for volitile counters and snip profits from every fluctuations calculated through any forms of technical analysis or theories. There may be criticisms that snipers cannot survive for the long term as TA are lag indicators causing inaccuracies in predictions. Main reason why many traders fail badly as snipers is because they fall into the dangerous pit of emotional shakes. Many traders experience emotional changes as the price fluctuates creating biases in their predictions. Discipline is very important to avoid the "emotional temptations" created by rapid price movements. In order to gain a better foothold, snipers must create a set of reliable rules to follow and stick to them.

As snipers, one must be able to nimbly change your view of price directions anytime as circumstances changes. Most snipers fall trap into the anchoring bias, insisting on previous bullish/bearish view on price, which results in reluctance to cut loss and overoptimism in their views.

Remember, to be a sniper, you must be willing to target your losses which is more important than targeting your gains. Lay a set of reliable rules and follow them firmly. Do not anchor to past perceptions if the rules result in a contradicting view. When in doubt, do not enter, observe. If you cannot resist the temptation to restraint yourself from trading when the time is not right, most likely you will be affected by strong emotions when trading. One advice to this group of traders, be an investor instead, or else your $$ will be at risks.