Buy/hold vs. Daytrading vs. Asset switch ???

Discussion in 'Trading' started by andrasnm, Apr 8, 2001.

  1. I have tried daytrading and swing trading. Basically it takes way too much time and energy not to mention cost of
    quote/execution etc. I have never been a buy/hold type
    guy - even since my broker days (1986-87) was a good period
    of getting anyone out of that outmoded thinking....
    Little mentioned class of folks, money managers, asset switch professionals who use any and all tools to move money
    around and make a lot ! I read the book from Gerry Smith
    and kind of opened my eyes. I don't have the time the
    luxury and even the belief to sit at home thinking I can
    beat this market every day (i.e. daytrade) also any position
    in individual stocks takes too much research and time.
    Company's are getting very bad at disclosing finance data
    or even out right lie !!!! (check out NITE, TIBX and other
    horror stories). Bottom line I can't be doing this full time. Nor do I want or wish right now. Anyone here uses
    asset allocation on some amount and what is the required
    daily routine ??? Any feedback or ideas ?
  2. Andras - sounds like you might want to consider position trading (especially if you protect the positions with options) or option spread positions. You don't need to watch them intraday and they have controlled risk.
  3. WarEagle

    WarEagle Moderator


    There is a book by Mark Boucher called "The Hedge Fund Edge" that talks about asset switching. He has developed several models that beat buy and hold strategies and require less day to day monitoring than daytrading or swing trading. It involves staying on top of world markets and foreign economies and moving your money into various funds/stocks/bonds/commodities around the world as different scenarios unfold. Its basically like you are running your own hedge fund. The time frame is pretty long, probably only a trade or two per quarter, and some rebalancing from time to time. It was very interesting and I will probably incorportate some of his ideas into my long term portfolio.

  4. ArchAngel,
    I have tried position trading and it takes a different set
    of skills (temperment) that I have. Also picking them and
    trading them is also a very labor intensive (and to
    some extent vig intensive) work. NL Funds are around and
    the managers basically have a far better chance to pick
    them and trade them that I have. Sector funds and even
    short funds(futures) (they take $25k a pop thou) are better than picking stocks. At least for me. I am a macro kind of a guy always have been, can't micro manage trades or software.
  5. rrisch


    One idea, I have had, is to move money among the various sector ishares, hldrs and spydrs. I have had some success recently in shorting specific hldrs like BHH and SMH. One methodology would be to go long or short on the sectors that show a clear bullish or bearish pattern and every week or month change the portfolio. One can also include in this, the ETFs for various foreign countries. Any try anything like this?
  6. Thanks to all who responded. I have started to join this group with the heated argument over the mertit of tech analisys. I, who have traded futures originally and had a
    series 3 broker license argued that if tech analisys worked
    some people would have made some money in the futures business. All in all - Gary Smith's book was a fresh scent
    in the daytrading bloodsports and costant stream of self appointed gurus of the internet trading world ! This post is not to revive the old arguments over chart worming but to open everybodys horizon and perspective over the most importnat matter - we are (supposedly) in it to make money !
  7. rrich,
    No I am focusing on fund/asset switching for NL funds
    via Fidelity. I read Gary Smith's book and I am mimicing his style. Even if I could or wanted to trade - I could not , no time. I work Full time with a two month old baby girl.
    I also started exploring the Junk bonds as an asset class
    even to park cash in. I will try to refine and re-configure
    my swich methodology which now has to be long term. 180
    days at least to avoid penalty. I scale in buy some Strong
    funds, Junk and Blue chip technology alike. I am in 30-40% and rest is still in cash....
    When I am not working I likely will trade mini spooz on
    the internet....