OT - Forgive me but this type of article is the biggest bunch of BS we are being forced to read in the financial markets. I can not stress enough that the concept of "killing the buy and hold philosophy" is pure crap!
Obviously, with a simplistic view, one must "trade" even to buy and hold. Eventually one "trades" out of this held position but holding a good company's stock for long periods of time will NEVER die or get "killed off".
Once again, stating the obvious, gains made with buy and hold--when a stock is bought at the right price-- will (in general) far out gain someone trying to trade in an out of a climbing stock.
Buy ACLS at 18, 19 or 20 cents. Buy INTT at 10, 11 or even 15 cents. Where are these stocks today? You could have easily bought hundreds of thousands of shares on the open market while the stock prices were depressed, if you were so inclined during 2008,early 2009. If you had the guts to jump in while everyone else was dumping. I choose 2 stocks from this sector but there are literally dozens of stocks that would have produced 1000% plus gains if bought at the "right time".
Not to mention buying GOOG at the ipo. Buying APPL a few years ago. The lists go on and on. While not in the 1000% plus gain arena, they are in the multiples of hunderds of percentage points.
HFT may be able out scalp traders, no doubt about that. But knowing when to buy and buying with "held powder", held for the purpose of buying the "opportunity of a decade"....well, I would say that this approach would confirm that one can still profit handsomely with a buy and hold approach.
RtS has been a champion of the concept that keeping a large stash of cash on the sidelines, waiting for the "once in a decade" opportunity to come, looking for the chance to buy as the market was in a huge slide/bear market. Please correct me if this is no longer the case, RtS!!
JMO
TO |
