Seeker,
You may be right. Aside from one small error in your observation about taxes, because of my persoanl situation.
<the optimum strategy may be long term buy and hold>
I have learned from your strategy and dutifully own PEY.UN, CNQ, STO and COS.UN, all except STO as long term investments. (STO is calls only)
I do think that even though companies evolve even more frequently now many of the original DJIA companies disappeared almost 100 years ago. So, even if you want buy and hold the market might not let you.
djindexes.com
I understand your point about quality of companies, though. Isn't it interesting that perhaps the biggest trading vehicle of all is the QQQQs? Those pesky tech stocks!
I will say one thing, though. If you have your first 1 or 5 or 10 million or whatever, you might be able to afford buy and hold, or you could just hold cash. If you can make your first x million trading, what's wrong with that? I subscribe to several 'trading signals' and one has about an 80% success rate. I leverage that with options and the gains are fine.
Therefore, I have decided a hybrid strategy is best for me. I have my LT holds, as described above, plus a trading strategy.
David |
