I have been practicing with a few stock simulators for just over 1 year. My process for investing is to buy stocks when I see a significant drop in share price due to what seems like negative media around minor events, or just a down turn for an entire sector. For example, an established restaurant chain might drop 5% because a few franchises reported food poisoning. Or maybe a company drops 5% because it needed to perform a product recall due to manufacturing defects on recently sold products. Or maybe the entire healthcare sector went down 15% in just one week.
So I will buy at these times because I'm reasonably confident these companies will recover from these events within a 3 month time frame (some times it is just a few weeks), at which time I will sell.
Is this considered an actively managed portfolio? Or is it considered day trading?
I ask because people say actively managed portfolios typically under perform relative to the index. But in my simulators, I've achieved a 50% increase over the past 12 months, where as my passive investing portfolios only gives me about a 8% to 11% return. So this made me wonder if what I'm doing is considered active management? Or is it day trading?