As October approaches, I have been reflecting on my past trades and considering different approaches to the market. It is interesting how opinions on investing versus trading can vary significantly. Some people argue that investing is superior because it allows for the accumulation of dividends and long-term gains. By holding quality stocks or assets over the years, one benefits from compounding and the steady growth of their portfolio. The idea is that time in the market outweighs the temptation to time the market, and those who stay invested through market cycles often come out ahead in the long run.

On the other hand, there are those who believe that trading can be more advantageous, especially for those looking to capitalize on short-term opportunities. The argument here is that consistently taking small profits from frequent trades can compound into significant gains over time. Moreover, they suggest that trading might reduce exposure to major downturns, such as a recession. If a recession hits, long-term investments could see substantial drops, whereas a trader might have already taken profits and minimized losses by moving in and out of positions.

Both approaches have their advantages and disadvantages, and I have come to realize that a balanced perspective might serve me best. In the future, I am considering a strategy where I split my focus between investing and trading. Since I have multiple brokerage accounts, I can dedicate one solely to long-term investments. For this account, I will focus on accumulating strong dividend-paying stocks and growth assets. My plan is to "buy and forget" — after making my purchases, I will delete the app to avoid the temptation of constantly checking prices and making emotional decisions that lead to selling prematurely.

For my trading account, I will take a different approach. Here, I will embrace short-term volatility and aim to capitalize on market fluctuations. By trading with a more active mindset, I can potentially take advantage of quick profits while remaining flexible. This way, I am able to balance the security of long-term investments with the agility of trading. It feels like a way to get the best of both worlds: long-term wealth building through investing, and short-term profit-taking through trading.

By implementing both strategies, I will also be spreading out my risk and avoiding putting all my eggs in one basket. I hope this combined approach will give me more control over my financial future while also helping me stay disciplined and level-headed in the market.