Traders or investors tend to separate them in black and white but I do feel without mater what part you take the goals for everyone in the stock market should be the same. Successful traders and investors actually have similar goals: manage risk; diversify, and learn to control emotions. The main differences are the tools they use and how long they hold a position. All of us should stay the course to make profit in short term and long term. Without short term profit you would be in trouble of your cash flow, which would harm you definitely. Without long term profit accumulate, you would be in trouble for your life in the stock market. *** We are the most optimistic when the market is at an all-time high, and most pessimistic when it’s at an all-time low. Because of that we could not get profit both in short term and long term. We are hungry for profit. But we should remember time is our friend, impulse is our enemy. We need the diversification and time average so that we can roll our snowball bigger and bigger. We need to find a way to hold stocks in an amount and with the margin of safety so that we can sleep at night without matter the cause is euphoria or depression. Sell down to the sleeping point. *** Managing risks actually could be simple. Don't buy too much for any target even they seems very promising and don't buy all at one time; only buy what the calculated profit is promising and the calculated risks are affordable. Since 2004 before May 2011, every time when I used time average such as first entering a position, he often buys half of a normal position, and adds a little to it if the stock goes up, I could manage my portfolio very well. However while I was fearful or greedy I tended to buy too much at one time for one position, which always led failures. The trick is we should make bigger money when we’re right, and cut losses when we’re wrong. We have to know we do not always need to be in the market. Knowing when to lock in gains and move to the sidelines is just as important as knowing how to capture gains in the first place. *** Today some traders or investors around PPX were in bad mood. They sold it to a new low, $0.05. PPX announced it just sold some of its asset for $69million and its market cap was $30million only. I still have not got the skills to evaluate its value. However PPX has been on fire for 5 years and the price should be much less than its remaining value. Read the news from China and did feel it was bad enough. So I bought $5000 PPX at $0.051, which let me feel not very good since I paid $0.001 more than its close price. If the crowd mood becomes good again, it should be a good buy if not a best buy. Could it come back to $3.5? Don't know but if it could I would make a killing.