Hmmmm, interesting:
http://www.ritholtz.com/blog/2014/08/why-long-term-investors-beat-short-term-traders/
Do you agree?
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Come to meet me. :-) I decide to open a twitter account using this photo. It was taken yesterday Name? Babysun if it is still available... -
So is my account balance. Index Started Week Ended Week Change % Change YTD % DJIA 26071.72 26616.71 544.99 2.1 7.7 Nasdaq 7336.38 ... -
Haha.. a lot of people were talking about ASHR in the Chinese forum. I can image how many people are so crazy about the Chinese stock marke...
The author belongs to a group of folks who have already decided against trading and look for "evidence" to support their position rather than having a true open mind.
ReplyDeleteHe focuses on tax disadvantages traders supposedly have compared to long term investors. However, if he were to do more in depth research, there are investment products that offset that such as futures, which allows traders to claim 60% as long term. One can also set up retirement accounts where you can put in much more than the amounts allowed for the 9-5 crowd.
I think it all his and others negativity towards stem from a disbelief in technical analysis or any methodology to time market moves. The fact that 80% of traders fail doesn't mean that TA doesn't work any more than the likely that other endeavors with high failure rates. Using this type of logic, it's crazy to try to make it big in entertainment, starting your own business, being a sports star, etc..., because the vast majority of those who try will do worse than those who stick to a "safe" 9-5 career path.
Trading is clearly not for the masses as it has a big learning curve which requires much time and effort, and maybe even some luck to overcome. But it can be done and the rewards can far exceed passive investing results. On the other hand, passive index investing also comes with a high risk. If the market didn't bounce back from the lows made in 2009, he'd be writing a different article. Those who just "trust" the market to perform well over time will suffer great pain and loss when a multiyear Bear market eventually appears.
By the way - good job on your trading calls the last several weeks- but I guess Barry would just call your success "dumb" luck. ;-)
Hey, thanks for your reply! How have been been?
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