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Traders Have Advantage Over Investors Now: Strategist

Should you be a trader or an investor in this type of volatile market? Scott Redler, chief strategist officer at T3live.com, shared his insights.

“Right now, the average investor is starting to learn how to use technical analysis and they’re starting to learn how to manage their positions versus buy-and-hold, which has gotten them nowhere over the last 10 to 12 years,” Redler told CNBC.

He said short-term traders take advantage and profit from following trends.

“This year, we’ve had nine 5- to 10-percent moves that have all happened in 5 to 10 days, and the averages are up only about 4 to 5 percent—so we’re in the same spot,” he noted.

For example, Redler told investors how they could have profited from trading companies such as General Electric*.

"This week, we put together a plan to get involved in GE at around $16 [a share]," he explained. "We added to it yesterday [Wednesday] and today it’s at $17—we’ve made 5 percent in GE this week, whereas it’s tough to make that over the course of a few years with GE."

"So buying at the right time and selling at the right time is what makes sense."

Scorecard—What He Said:

  • Redler's Previous Appearance on CNBC (Sept. 22, 2010)

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More Market Opinions:

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CNBC Data Pages:

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Thursday's Dow Laggards (as of this writing):

AT&T

Wal-Mart Stores

3M

Caterpillar

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Disclosures:

No immediate information was available Redler or his firm.

*GE is the parent company of CNBC and CNBC.com.

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Disclaimer