Lost yet again, every strategy has loophole

Discussion in 'Trading' started by innovest_11, Sep 8, 2007.

  1. I'm lost again, have try every strategy, technical chart, buy low sell high, buy high sell higher, usually will buy a basket of 5 to 7 stocks, also will cut loss

    Initially my strategy will work, then later the strategy will succumb to failure, cut loss and lose money, somehow the market is so dynamic and ever changing, can never predict what's the next move, even if u don't predict and follow trend, the trend may change suddenly

    Must i really invest for the long haul? instead of trading?
     
  2. I think the word is balance. Trade the amount you are able to lose with out affecting your financial well being and invest the balance in a diversified portfolio.

    I allocate 20% to trading and higher risk investments, the balance is allocated 70/30 index funds/bonds. 8% annualized with compounding and long term capital gains credit isn't exciting, but it will provide for a some security in your later years. (I re-invest a minimum of 75% of earnings from all investment vehicles).

    Blue skies and tailwinds...
     
  3. vectors101

    vectors101 Guest

    look man you aren't trader since you even waste time and capital with bonds and index funds

    i used to get freaking 10% in gov't bonds and didn't care about that crap.


     
  4. You are correct, I am an investor... I am currently educating myself to diversify into position and some swing trading to supplement my income, not replace it. The OP asked if he should invest for the long haul, considering 95% of "traders" fail, I offered him my opinion. I obtain 12% in trust deeds and approximately 30% in my riskier investments as well, however, for the long term, capital preservation is of utmost importance. I set my financial goals and have exceeded my expectations securing my financial independence. I am quite content being retired at 45.

    Trading isn't for everyone nor is a conservative approach, I just offered the OP an alternative as he inquired about "investing for the long haul". I am happy for you, being a member of the elite 5% of successful traders and wish you continued success.
     
  5. Tums

    Tums

    because there are four phases to a market cycle. Most of the strategies only cover one or two phases. That's why a system will work, raking in the dole, then all of a sudden falls flat on its face. That's because the market has shifted it tempo/pace/oscillation/rhythms, and your system was not designed for this phase of the market.