Quote:
Originally Posted by lowside67
Warren Buffet also publicly states over and over that he does not believe in timing the market and has held many of the same positions for decades. Cherrypicking one Buffet quote out of context does not lend any more credibility to your approach.
For what it's worth, nobody has ever gone broke taking profits, and you are of course entitled to your risk tolerance about when to take cash off the table.
However, I believe strongly that research is clear that one of the most important factors in overall return is time in market and generally speaking, people who go to cash between their tactical moves perform worse than those who just stay fully invested. This is intuitive if you believe that the market always move upwards over a long enough time horizon.
-Mark
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That’s warren buffet’s style. The point was the typical diversifying is only for the ignorant.
Time held is irrelevant, it all depends on what time length your naturally tuned perceptual awareness to certain market information is.
I forgot who said it, but it went something like: people will always deny, doubt, and put down, what they, themselves do not have the ability to do.
Warren Buffet obviously does not have the ability to day trade or do anything in the short term. His edge is his way of filtering stocks, and time held.
Yes, you are right, most traders lose money going in and out of securities rather than holding long term. But you also forget
MOST “traders” are also really shitty traders that lose money overall, and could be hardly considered “traders”. More like people with full time jobs and trading... gambling, as a side hobby.
Mark Douglas once begged the question of whether the difference between consistent winners and everyone else boiled down to intelligence... or if they worked harder... or if they’re better analysts... or better trading systems? They all sound possible except when you consider that most of the trading industries failures are also societies brightest and most accomplished people.
The largest group of consistent losers is made up of primarily doctors, lawyers, engineers, CEO’s, wealthy retirees and entrepreneurs. On top of that the industry’s best market analysts are the worst traders imaginable.
You just have to find your edge and keep at it.
MOST people lose money going in and out of the market, but some don’t. It’s your duty to find out if you’ve got the stuff other traders wished they had.
Look at traders like Jesse Livermore, Richard Dennis & the Turtles, & Paul Tudor Jones. There are hundreds of thousands of others similar to them that fly by unseen. None of them trade like Warren Buffet.
Like I said above, people doubt what they are inept at.
You don’t have to know what happens next, to make money in the markets. You just have to be consistent in managing your entries and exits after you enter.
All the research in the world doesn’t matter if most of the traders out there don’t read about, or are oblivious to that information. At the end of the day it’s the traders that move the markets, not some mathematical economics theory. And traders repeatedly do stupid irrational things all the time, which these fundamental information do not account for.