Stock: lets put this to bed right now. You have made some good buys, aapl, ma, rimm etc. As of yesterday, what is you're tax situation?Have you sold a single share of anything that you realized a gain? Until then you are not "crushing" the mkt. I am not the only person to point this out. I knew alot of people just like you in '99, they didn't "want a tax situation" . We all know how that turned out. Did you sell any RIMM yesterday? That was a gift that needed to be taken in my opinion
Have you sold ANY stock for a gain? I seem to recall you lost on DDM. I am not trying to be a prick, but if you have never sold a stock for a gain, you haven't made anything.
No I haven't sold any of my winners I have found that buying and selling too often hurts your returns. The best time to sell is when valuations and the chart is over extended. Or if there is really bad news that affects the fundamentals of the company. Other times, I may sell if the stock is underperforming and seems to have lost steam. I got rid of my hans and tie awhile ago and put it in FWLT and MA. I can't wait for the VISA IPO. That will be huge. I may just go all in.
Untrue. That is like saying a person who bought a house 20 years ago that has appreciated 400% hasn't made anything until they sell it. Whether I agree with his philosophy or not, unrealized gains are still gains. The holdings are as likely to go up as down across the portfolio.
He has more buying power, if thats what you mean. Buying power goes away, as fast as it goes up. Buying the ibd top 10 momo stocks in a rising mkt is a great system. I applaud him for that. Buying RIMM when its up 20% THAT DAY, ugh. But hey, it's working form now. 2 months from now? Who knows. I'd rather be a trader though, sleep much easier at night.
Definitely, and a good daytrader given the same starting capital should easily outperform a guy like stock trad3r and his "buy and hold". Ending the day flat and getting great sleep at night is so critical.
Forget the statistics, I'm saying a good daytrader (someone who is already proven) vrs a good buy and hold investor. The daytrader will make FAR more money given the same starting capital (within reason, there is a liquidity limit in daytrading unfortunately). Just as an example, I am a daytrader only, started with 5K at the beginning of 2006 and turned that into 230K by years end. That high return is based primarily on the fact that I was able to compound and compound everyday, as my capital is constantly being freed up. The buy and hold guy has to sit through periods of inactivity or even drawdown. Basically, the more opporutnies you give a trader that can trade, the more money you can make. Simple math (also helps to have some leverage afforded to me, however the firm makes up for that in commissions charged).