50% smaller returns missing the top 10 best days in the market from 1999-2019

Discussion in 'Trading' started by Ninja Mobile Trader VPS, May 1, 2021.

  1. Interesting article about how if you missed the top 10 best days in the market from 1999-2019, your return was cut in half. If you missed the top 20 best days, you actually lost money. https://www.fool.com/investing/2019/04/11/what-happens-when-you-miss-the-best-days-in-the-st.aspx

    There are probably similar conclusions with day trading. No matter what, even if you're on vacation, you don't want to miss the strong trend days where it is easy to make 5-10x the points you would on an average day.

    I also conclude from this that a day trading strategy that allows winners to run is better than a small all-out fixed profit target in order to take advantage of strong trend days paying for losing days.
     
    shuraver, VPhantom, yc47ib and 2 others like this.
  2. deaddog

    deaddog

    No one ever mentions how you'd have made out if you missed the worst ten days.
     
  3. ph1l

    ph1l

  4. Overnight

    Overnight

  5. deaddog

    deaddog

    Na they just missed a 9
    upload_2021-5-1_16-15-33.png

    Manage your risk by having a method of getting out of the market when it's falling
     
    unconventional wisdom likes this.
  6. Overnight

    Overnight

    Why? Buy and hold provided the best returns. That means NOT getting out of the market when it is falling.
     
  7. Tradex

    Tradex

    A very bad idea if you are over 40 and expecting retirement money from the stock market.

    Keep in mind that it took more than 25 years for the market to recover from the 1929 crash.

    Can you you truly afford to wait a quarter of a century (or more) just to break even?

    Folks, forget this buy and hope bullshit approach (largely touted by the Wall Street gang...) and manage your money actively: buy uptrends and short downtrends, that's all there is to it.

    By far the easiest way to lose your life savings fast.

    When the market is falling you short it, period.
     
    Last edited: May 1, 2021
  8. Overnight

    Overnight

    Dude, this isn't 1929! It is not 1987! It isn't even 2008 anymore! Did you see our 30% drop last year? How long did it take to recover?

    How long did the Q4 2015 drop take to conclude itself? Or the Q4 2018 drop? Not long at all.

    Past performance is not indicative of future results, sure. But that goes both ways.
     
  9. Tradex

    Tradex

    They say the biggest drawdown is yet to come.

    And it will come, give the market enough time and it will always produce a gigantic crash that will cripple the economy for the next 30, 40 or 50 years, who knows?

    The Nikkei (Japan's Index) has been in a drawdown for the last 27 freaking years.

    It never recovered since then.

    The idea that the US (or any country) will be spared from such a prolonged drawdown is, at best, delusional.
     
    Last edited: May 1, 2021
  10. Tradex

    Tradex

    Edit: The Nikkei (Japan's Index) has been in a drawdown for the last 32 freaking years (not 27), sorry for the typo.
     
    #10     May 1, 2021