daytrade diaries ... january 11, page-205

This is my most recent post on another thread about "life as a day trader", but thought it may be of interest to some Day traders in regards their trading strategies.
Post:
Lesh,
You have raised a very relevant point about multi baggers. Whilst I post on the Day traders thread my principal operation is about finding undervalued situations that will bring very high returns relative to the risks involved.
If you find a few multi baggers for the year you will have a great year. Finding multi baggers requires hours of reading & research rather than just going with the herd.
Many Day traders take very thin margins & exhaust themselves having to repeat the process day after day. Given they buy & sell many stocks it is very easy to get caught with a lemon given most Day traders do little or no research apart from may be look at a chart.
Chasing the multi baggers may mean more research but you are not forced to work the market each day for a living. With multi baggers you can take a break from research/sharemarket for a few days/weeks i.e. take a holiday & as long as you have a rough idea how markets are trading you are not taking a huge risk.
In all the trading activity that Daytraders do, they often do buy a multi bagger but unfortunately throw it out too soon & probably replace it with a low performer. Personally I like to harvest a far proportion from a multi baggers before selling. Whilst I have frequently sold too early at least my gains are multiples of the day trader who probably harvested very little.
Conclusion: Research more & trade less normally gives not only a far better financial result but also better use of our most valuable asset which is time.
Regards
Buffett