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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Libbyt who wrote (1939)	1/24/2005 8:53:43 AM
From: chowder	Respond to of 13449

>>> I think that performance would have to be determined by what is considered a "long term" hold....3-5 years, 10-20 years...or the last 50-70 years? <<< A look at one year, 3 year and 5 year results will show that most mutual fund managers underperform the market. Who can afford to wait 10-20 years to see if they are right or not? What if you are wrong after 20 years? What then? When I put a trade on, I look at the risk first. What's the worst that I expect to happen. Most long term buy and hold people mainly focus on the reward. They give very little weight to the risk. If they focused on the risks, they wouldn't take more than a 8% to 10% drawdown. William O'Neil of Investors Business Daily, who combines fundamentals with technicals says that one should not take more than a 8% drawdown under any circumstances. No exceptions! So in essence, it doesn't matter what your trading strategies are for buying. It's how one manages losses that determines their success or failure. dabum