I wouldn't count on that buy and hope strategy alone, especially if the investor is going to retire in 10 years or so.
But if you are young it is...
Well, it is never a good idea to mess with Clint Eastwood... :D
Jokes aside, your index strategy has indeed the time on its side, the S&P 500...
But don't worry, you will be fine. :)
The 1929 Dow crash lasted 25 long, long years, remember?
Let's see, the 2000 crash lasted 2269 days after the S&P500 went down nearly 50%.
The 2007 crash lasted 1702 days and the drawdown was 57%.
Well you could be doing both actually.
But that's not even the point, if you are long only how can you profit from bear markets?
When you say roll, are you talking about rolling options or rolling futures contracts?
Well the edge here, at least as far as chart study is concerned, is the priceless experience the trader gains over the years.
And I am not...
And during bear markets, you do what, hibernate in a cave, like this bear here? :D
Of course, that how the "system" works... :cool:
Thanks for your post.
And you were searching for head and shoulders, double bottoms, stuff like that?
The exit is a close above the 200-day moving average (stop and reverse).
This is not a complete trading system, just a simple suggestion of course.
Care to elaborate?
Now go short when the price closes below the 200 day moving average and make even more money, with much less drawdown.
Plus you will avoid ALL...
You truly believe institutions spend 20+ years studying charts, like some "retail" traders do (myself included)?
"The stock market is never obvious. It is designed to fool most of the people, most of the time."
Legendary trader Jesse Livermore.
Yep, in the meantime daytraders are quietly profiting from the mini trends inside that range.
Trading is about making money, NOW, not about...
Yes and no!
For moving averages and other mathematical indicators the answer is yes, of course.
For classical chart patterns like Head and...
I watch and study about 50,000 charts a year, mostly historical charts.
There is no genius in trading, or "overnight" success, this crazy...
On the contrary, MILLIONS of traders all over the world make trading decisions around these highly popular moving averages (the 50, the 100 and...
Separate names with a comma.