Discussion in 'Trading' started by exchange, Sep 23, 2005.
because weak stocks are removed from the index and replaced with strong ones.
So you are suggesting to average down SPY and QQQQ ?
Now i know why Savant has so many posts. He replies to stuff like this,.
So, what's your point?
Maybe the index never goes to zero, but your return can easily be zero or even negative!
What would have happened if I bought SPY five years ago and held long? Hmmm....
now i know why someone like stock777 has over 2,415 posts and has been on elitetrader.com for more than 4 years (over 1,460 days). that's almost 2 posts a day nonstop for the past 4 years.
your return could easily be zero or negative if you bought SPY yesterday (friday). it depends on timeframe.
the only people that bought in, in 2000 were greedy$$$ people. they always buy in at the top.
Without saying further ..how many of those posts are contributing to one liners...snide remarks...opinions...
a Journal...a post about trading and good advice...a statement and not just replies...
stock777 knows his stuff, but is entertained at ET...
Buy every year after you see a decline of 8% or more.
Buying just year 1999 or year 2000 of course hurts.
If you are a believer in what you are doing (dollar cost averaging) and well tested your strategy, you are up quite a lot comparing to interest rate growth and the market return with respect to the year 2000 top.
Remember, you cannot do that on a market cap based index like Nasdaq 100. It has to be a broad based index like S&P, Dow, etc.
If you buy on margin your portfolio can go to zero, when an index drops....
Separate names with a comma.