More people lost money waiting for correction

Discussion in 'Trading' started by qlai, Apr 13, 2021.

  1. deaddog

    deaddog

    That's your reasons why you would trade a strategy that won't outperform buy and hold?

    I assume then that the investing goal is to be comfortable. I see that as quite reasonable for an investor. And for a little excitement make a few trades knowing you'll probably do worse than the market return. Lottery type thinking. Trading as a hobby.

    If your lifestyle depends on how you manage your capital then you have to look at your strategy. If you cannot outperform either the markets or one of the balanced funds you refer to, then you probably should not be trading.
     
    #41     Apr 14, 2021
  2. Arnie

    Arnie

    Some of my best trades have been buying a new high at the close. :)
     
    #42     Apr 14, 2021
  3. newwurldmn

    newwurldmn

    Many trade because they cannot suffer the drawdowns of a buy and hold.

    For example : a pension fund has to earn 6percent a year to cover their pension liability. If they don’t earn 6percent one year, the company has to put that money into the fund.

    If you can outperform the market year in and year out without taking on more risk on a sizable amount of capital, you are one of the very very few.

    I trade as part of my personal capital structure. It doesn’t have to beat the market, though I’m up over 10x in the last 9 years.
     
    #43     Apr 14, 2021
    beginner66 likes this.
  4. bone

    bone

    Reason number 5,895 why Jack Schwaeger and "Market Wizards" ruined so many trading accounts. Too many retailers thinking that trading involves timing huge macro market moves.
     
    #44     Apr 14, 2021
    Nobert and beginner66 like this.
  5. deaddog

    deaddog

    I do manage to outperform most years. I might lag in the up years but haven't had a down year since 2002.

    My performance is nowhere close to yours. With a 29% annual return you'll probably be in Schwaeger's next "Market Wizards" offering.

    You have my permission to keep trading :D:D:D
     
    #45     Apr 14, 2021
  6. newwurldmn

    newwurldmn

    I was shocked at my pnl when I studied it in December. When in the weeds it was actually slow and steady with some big years and no down years.
     
    #46     Apr 14, 2021
  7. Just keep buying every QQQ dip. What's funny about the dot com bubble was that the underlying thesis was correct: the internet will change everything and internet based companies will have the best growth. A 100k investment into QQQ 10 years ago is now 600k, and that's just holding. 10 years ago was also not the bottom of 2009, and timing the bottom of a correction you would have over 1 million from a 100k buy and hold investment into a passive index fund. Now if you also add in buying all the dips and reinvesting your income back into more QQQ, wow. Lastly, the fed and economists have already said that the lesson from the 08 recovery was not enough stimulus. The fed will remain in control until we are all filthy rich.
     
    #47     Apr 15, 2021
  8. S2007S

    S2007S

    New historical highs yet again today. Something is going to give very soon. The amount of euphoria is absolutely offffffcff the charts....I just can't see this trajectory continuing across all assets ....there will be a stampede of sellers running for the exits very soon. Lock in profits and don't get massively greedy!!!!!!
     
    #48     Apr 15, 2021
  9. S2007S

    S2007S

  10. Overnight

    Overnight

    #50     Apr 15, 2021