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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: manalagi who wrote (71875)9/25/2006 11:45:48 AM
From: Wyätt Gwyön  Read Replies (1) of 206316
 
the logic of LTBH is not that it is the theoretically best way to maximize profits, but that most people will hurt their returns by trading in and out.

my approach is to simply have percentage targets for equities and fixed income. when equity percentage rises, as it does when stock prices rise, it's time to sell some and increase cash. when equity percentage falls, as it does when stock prices fall, it's time to buy more.

a simple system, but forces me to "sell high, buy low".

if you are 100% equities all the time, you never have this option. if you use leverage, you can be forced to sell low.
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