If you feel that you lack the information to invest (whether due to deception by the rich folks, laziness, or whatever), I don't see why trading (or "taking profits") is a wiser course of action than LTBH.
With LTBH, you basically have to make one right decision (when to buy). With a strategy centered around taking profits, you have to make numerous--when is the stock high enough to "take profits"? when is it low enough to get back in?
That, IMVHO, is a sucker's game.
ethan
I think that the market of the last 5 years has shown that not having an exit strategy is a sucker's game.
LTBH works great in a prolonged bull market. As UF said to me over 2 years ago, the Gorilla Game had never been tested in a bear market. Now it has, and because of it's ignoring valuations and exit strategies, in my mind it failed.
I'm still generally a LTBH investor. However, the next time (if there is a next time) I have a 5x or 10x profit from my initial investment, I'm taking at least a sizable percentage of that investment off of the table. To learn nothing from the debacle of the last 2 years and blindly hold onto a LTBH idea would be a shame...
LTBH is fine in a 401K when you have 20 or 30 years before cashing out. When the time frame is shorter, if we've learned anything then it should be that to blindly hold onto one idea (Gorilla Gaming, LTBH) is very dangerous.
DrId@invho.pov |
