Hey PV,
In some ways I agree with you and in others I don't...
- For the average person, the buy and hold strategy is the most practical.
- Many of the posters on these threads are trying to become more than the average person... and IF (VERY BIG IF) you ARE (VERY BIG ARE) able to time the markets an/d or time stock moves... the profit potentials are enormous (little enormous). For those who can time their trades, the profit potentials are not just percentage increases but many-fold increases in profits. This has long been documented in Norman Fosback's book "Stock Market Logic".
Now I don't suggest everyone reading this post turn day trader... no, most need to find his or her niche in terms of how they can trade and this includes such things as:
+ time frames or holding periods (short , intermediate, long)
+ investiment vehicle (equities, bonds,, indices, futures, options, etc)
+ buy/sell signals
+ portfolio pprotection
and I am sure others could easily add more to this list.
You need to know what you are doing right and emphasize those things over your errors... and especially knowi when to fold.
So I don't necessarily agree that people SHOULDN'T trade frequently... IF IT WORKS FOR THEM!!!
If not, then your comments apply, IMHO.
Regards,
Bill |
