Agreed. I love reading all the insights from folks…
One thing I forgot to mention… In my day trading, I only trade SP500 e-mini
futures contracts. So, I really don’t have the opportunity to get in on the
overnight news in the way you’re describing. I feel that I’ve been there on
catching those announcements in the past and I just don’t have the stomach for
it. Instead I am looking for very small moves that allow me to hit my target
then I either wait for another or I close up shop for the day. I am actually
more a fan of closing up shop as there is always another day.
Cheers!
On Jan 5, 2020, at 10:28 PM, Jeff Brinkman <j7brinkman@xxxxxxxxx> wrote:
Chuck,
Appreciate your wisdom, some great thoughts about the markets. Agreed,
controlling emotions and employing discipline are required but difficult to
grab hold of and practice.
Buy and hold is the best strategy, esp if it's a S&P index fund. No effort is
required and you end up with half a million after 40 years or so with 10k at
inception, so the stats say.
I trade options primarily and hold for a few days to months, evaluating
situations daily. As far as not holding overnight, I would've missed the
takeovers I've stumbled across over the years, though I know you've
considered this. Something to ponder anyway, when they hit its breathtaking.
Anyone own Tesla? A melt up seems to be at hand given news of late, hitting
new highs (no overhead resistance now) and most of the Street still hates it,
bought some out of the money short term calls a few days ago. If it's a tech
firm it's still cheap, an automobile firm then no.
The beginning of this year has been fascinating to watch and trade, the
sector turnover and intraday reversals just to name a few.
I've enjoyed this thread and the wisdom of others.
Best,
Jeff
On Sun, Jan 5, 2020 at 6:47 PM Alan Shrock <alan.shrock@xxxxxxxxx
<mailto:alan.shrock@xxxxxxxxx>> wrote:
Like anything else 'buy and hold' isn't a panacea any more than 'buy low,
sell high'.
If that is all there is to it, we'd all be multi-millionaires.
Of course, being a multi-millionaire would be largely meaningless if everyone
else was just as wealthy.
https://seekingalpha.com/article/3830626-buy-and-hold-is-not-real-investment-strategy
<https://seekingalpha.com/article/3830626-buy-and-hold-is-not-real-investment-strategy>
https://www.marketwatch.com/story/buy-and-hold-is-impossible-2014-07-25 ;
<https://www.marketwatch.com/story/buy-and-hold-is-impossible-2014-07-25>
https://blog.wallstreetsurvivor.com/2016/08/22/buy-and-hold-investing-the-advantages-disadvantages/
<https://blog.wallstreetsurvivor.com/2016/08/22/buy-and-hold-investing-the-advantages-disadvantages/>
The bigger issue is "How will you react if the economy enters a recession or
a depression?"
If you are young enough you might choose to just wait it out, but if you are
older the recovery might take longer than your remaining lifespan.
On Sun, Jan 5, 2020 at 5:15 PM Carol Katterson <dmarc-noreply@xxxxxxxxxxxxx
<mailto:dmarc-noreply@xxxxxxxxxxxxx>> wrote:
I too am a buy and hold investor and would be interested in Fady’s analysis,
portfolio and investment parameters.
Carol
Sent from Yahoo Mail for iPad <https://overview.mail.yahoo.com/?.src=iOS>
On Sunday, January 5, 2020, 1:38 PM, L. Feldman <dmarc-noreply@xxxxxxxxxxxxx
<mailto:dmarc-noreply@xxxxxxxxxxxxx>> wrote:
Dear Fady,
Congratulations! You are really doing great. I am sure the group would be
interested to learn of you portfolio. I know that I am.
I agree with the author also. He presents persuasive evidence that "Trading
Too Much Hurts Returns". And this is consistent with the Value Investing
philosophy I think. Also his warning that reducing the cost of trades to $0
presents a temptation for traders to over-trade is spot on IMHO.
OTOH, reducing the cost of trades is a good thing if the trader can control
his impulse. :-)
Regards,
Lance
On Saturday, January 4, 2020, 11:55:42 PM EST, Fady Antoon
<fadyantoon9@xxxxxxxxx <mailto:fadyantoon9@xxxxxxxxx>> wrote:
I agree with the author of the article. I studied factor analysis and went
through the value investing program at Villanova University; I concluded that
buy and hold investment strategy outperforms the market in the long-term (
statistically proven) unless you are Jim Simons, who beats the market using
algorithms.
My return was above 40% in 2019, and I only made five trades. I am willing
to share my 2020 portfolio as soon as I finish with my analysis.
Regards,
Fady
On Fri, Jan 3, 2020 at 10:35 PM L. Feldman <dmarc-noreply@xxxxxxxxxxxxx
<mailto:dmarc-noreply@xxxxxxxxxxxxx>> wrote:
Dear Friends,
Here's an interesting article. Do you agree with the author that "Trading
Too Much Hurts Returns"?
earlyinvesting.com/trading-too-much-hurts-returns/
<https://earlyinvesting.com/trading-too-much-hurts-returns/>
Why Buy-and-Hold Investors Outperform More Active Traders
Data shows investors who trade too much underperform their “buy-and-hold”
peers.
<https://earlyinvesting.com/trading-too-much-hurts-returns/>
Happy New Year!
Regards,
Lance
--
Fady Antoon
--
Alan W, Shrock
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