The Recipe to Reduce the Risk.

Discussion in 'Risk Management' started by Jamie J., Jun 17, 2016.

  1. K-Pia

    K-Pia

    By the way ... It's not the majority that have losses.
    It's absolutely everyone ... It's part of the business.
    Someone that doesn't lose ... Simply doesn't trade.
     
    #11     Jun 18, 2016
  2. K-Pia

    K-Pia

    I'd say Risk & Reward is a dynamic.
    The laws are what govern its dynamic.
    -> Bias, Volatility, Time, Monyness & Co.
     
    #12     Jun 18, 2016
  3. One of best strategy is hold such as SPY, for 10 years.

    You will NEVER lose at all, since SPY is same as index.

    Furthermore, You never(almost) pay commission at all, and does NOT pay tax in SOME country.

    Similarly some does NOT use any air-conditioner or heater, to follow living in outside temperature. He never lose any money at all in his life.
     
    Last edited: Jun 18, 2016
    #13     Jun 18, 2016
  4. K-Pia

    K-Pia

    image.jpeg
     
    #14     Jun 18, 2016
    Gotcha likes this.
  5. #15     Jun 19, 2016
  6. You said 10 years, now you saying 50 years, if that metric is broken, you will probably say 200 years. Come on man, some of these posts just simply insult the intelligence of the readers.
     
    #16     Jun 19, 2016
    Gotcha and K-Pia like this.
  7. It is my mistake, just trying to mean "enough time".

    Sorry for that. Most person has 50 years of equal period (from 30 to 80).
    I should agree that even index could be minus, for SOME (selected) 10 years as above.
     
    #17     Jun 19, 2016
  8. I heard that, in 1930's more than 10 years also, the index was still down.

    Possibly, it was ALWAYS up for the past 400 years (stock market appearance), for ANY 20 years period.
     
    Last edited: Jun 19, 2016
    #18     Jun 19, 2016
  9. K-Pia

    K-Pia

    What bothered me is that you said "NEVER LOSE". In hindsight you can never lose (but you still managed to be mistaken). And forward you never know. Index or not. By the way Buffet isn't a passive investor. It's not comparable at all with index investing. Now I think a 5 year index holding periode is a fine one. But I don't want to lose 5 years of active trading for a mere 50% compounded returns. At least, not now.
     
    Last edited: Jun 19, 2016
    #19     Jun 19, 2016
  10. I mean that we "DID NOT LOSE AT ALL", if our account is down 50% during the time of 50% down of index. It happened in 2008.

    Furthermore, when index is up 50% and if our account is up 50%, then we "DID NOT WIN AT ALL". It is since stock market is zero-sum.

    Of course, when index is up 50% and if our account is up 60%, then we "WON ONLY 10%". / Those are my PERSONAL proposition, believe or not.
     
    #20     Jun 19, 2016