What a stupid study

[taowave]

Sounds like a short term trader who turns investor when wrong,who massively underperforms in strong bull markets

sounds like someone can't time the market? for shit...

 

[taowave]

Not to mention the cars he brags about trade for the same price as a Subaru...My chosen ride

A grown man that presents his status by the car they drive is immature.
No one gives a flute about that. The very fact you've made juvenile statements
like that in the past says a lot about you. Bullshit Artist Extraordinaire.

 

[wxytrader]

sounds like someone can't time the market? for shit...

Yes that's my point...if you are using stops clearly your timing is off ..if you are at or near the bottom then averaging down is the way to go...not for you smchucks because you guys are clueless when it come to TA.

 

[newwurldmn]

By definition buy and hold is not trading. So when someone mentioned "buy and hold" they are necessarily talking about an investment activity vs a trading activity.

this is one of those stupid discussions that keeps coming up on EliteTrader: comparing buy and hold investing to active trading on leverage. Its like comparing touchdowns to homeruns.

First, the discussion is re trading -- not buy / hold long-term people whom basically don't even watch daily, nor monthly prices.

But even the blind buy-hold strategy, worked in the U.S. market, for past several decades, and even then the profits are largely due to Central Bank money printing.

The same average down, no stop-loss strategy, employed in hundreds of markets, world-wide, over many decades, did not work. Remember, there were countries where currencies were replaced; where stock markets were closed; where countries disappeared.

All knowledge is contextual, so if the thread assumes in U.S., in large-cap listed stocks, for the past few decades, then still, that does not fully apply, as there have been many stocks that have --and still do -- declare bankruptcy. Averaging down those hundreds of stocks -- especially without a stop-loss -- was / is financial suicide.

So if the proponents of this theory assume they only trade "successful" companies, and live in period where the Fed balance sheet has been pumped to over $ 7 trillion, then yes, always average down, and never use a stop-loss.

I managed money in futures markets using back-tested, proprietary, computerized trading, in late 1990s, and told my clients I had FIVE separate, 100% highly profitable, with minimal draw-down trading systems.

One system bought S&P futures Monday morning; the next bought Tuesday morning ...you can see where this is going.

The fact that those 5 systems worked for long periods, does not alter the fact that they were incorrect approach to trading.

P/L is not the way one should just a trader, nor a trading methodology.

Like lottery winners, one does not learn from following their methodology of picking winners.

 

[wxytrader]

By definition buy and hold is not trading. So when someone mentioned "buy and hold" they are necessarily talking about an investment activity vs a trading activity.

this is one of those stupid discussions that keeps coming up on EliteTrader: comparing buy and hold investing to active trading on leverage. Its like comparing touchdowns to homeruns.

We're not talking about buying and holding. We're talking about averaging down which is an art. Versus buying and hoping and stopping out when you're wrong. This method would not work or would be much less effective if you're buying at the top and into the hype like most retail. This is why you guys can't wrap your retail heads around it. You have been drinking the cool-aid for so long

 

[taowave]

LOL...If you are at the bottom,averaging down is the way to go?? No shit Sherlock...

And for shits and giggles,has it ever occurred to you that the reason you arent fully invested and choose averaging down is because your TIMING is clearly off?? In fact,the only time you are fully invested is when you are dead wrong..

Yes that's my point...if you are using stops clearly your timing is off ..if you are at or near the bottom then averaging down is the way to go...not for you smchucks because you guys are clueless when it come to TA.

 

[taowave]

Averaging down is an ART???

LOL!!!!!!!!!!!!!

Trade a 60 delta at the start line, hope you are wrong,make two 20 delta pit stops to refuel and there you go.

We're not talking about buying and holding. We're talking about averaging down which is an art. Versus buying and hoping and stopping out when you're wrong. This method would not work or would be much less effective if you're buying at the top and into the hype like most retail. This is why you guys can't wrap your retail heads around it. You have been drinking the cool-aid for so long

 

[wxytrader]

LOL...If you are at the bottom,averaging down is the way to go?? No shit Sherlock...

And for shits and giggles,has it ever occurred to you that the reason you arent fully invested and choose averaging down is because your TIMING is clearly off?? In fact,the only time you are fully invested is when you are dead wrong..

How often do you get the bottom? Nobody gets the bottom. Most all positions go in the red. The whole reason your stop loss gets triggered is because you missed the bottom lol. The level of trading on this forum is anything but elite...it's basically buy at "support" or even worse but at "breakouts" lol with tight stops.

 

[SunTrader]

Not to mention the cars he brags about trade for the same price as a Subaru...My chosen ride

An uncle of mine, who is no longer around, was a bit of a story teller - of the true kind - and when talking of cars loved to mention an acquaintance of his who bragged about having only one of two Maserati Quattroporte's sold in Connecticut that year. It was forever in the shop with electrical problems. Unc said, gee I wonder why only two were sold lol

 

[taowave]

I know you are trolling in jest,as you are way smarter than you let on...

If you are really good at what you do, the approach is secondary

How often do you get the bottom? Nobody gets the bottom. Most all positions go in the red. The whole reason your stop loss gets triggered is because you missed the bottom lol. The level of trading on this forum is anything but elite...it's basically buy at "support" or even worse but at "breakouts" lol with tight stops.