<<OT: Why Is It...? >>
Recently, I've been reading some posts on another site's
thread from a VERY INTELLIGENT poster whose perspective
happens to be TA. Thus far, this poster's SEEK calls have
been pretty accurate.
In a recent post, he or she, though, made a pretty serious
misstep... not from a TA standpoint... mind you. They implied
that those that focus ON STUDYING THE COMPANY are
determined to lose money.
This reminds me of a certain school of TRADER thinking
and sometimes SHORTER thinking that says that LONGS are
emotionally attached to their stocks... and base their decisions
on (implied) yuck!... sentiment. Implicit in these somewhat sneering
remarks is a sort of world-weary sophistication, "I'm a professional...
and buy-and-hold isn't what a professional does..."
This COULD BE NO MORE WRONG. There have been
several studies over the years that have shown that buy-and-hold is not only a viable investment strategy... it's a SUPERIOR ONE. Plus, it's a lot less hyper-vigilant. Now, I mention these studies not to
debate their merits... but to simply make it plain that buy-and-hold
doesn't necessarily have anything to do with loving a stock.
And one can argue that buy-and-hold, PREMISED ON CAREFUL RESEARCH, is THE LEAST SENTIMENTAL APPROACH
OF ALL. It washes out all the peaks of GREED... and wanting to
push for just a little 1/16 more. And takes one out of the "THRILL
OF THE KILL" mode that I've seen first hand among SOES traders
as well just plain old-fashioned day trippers. There is a SENTIMENT
attached to the ACTION... the micro moves... it can feel... I've been
told... like a form of addiction.
That said, I respect ANY INVESTMENT APPROACH. But,
just don't characterize mine or others as something riddled with
SENTIMENT... just because it isn't your way to play.
Sorry for the diversion... but I've been wanting to say this
for quite some time...
Best Regards, SEEKers,
c m
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