Going or Holding Against The TREND....

[2020hindsight]

Trading against the trend ??
I think this thread should be combined with "Problem Gambling" lol

 

[explod]

i invested into RHG fully aware of the trouble facing RHG. Even at this point, my valuation of RHG remains unchanged.

I knew RHG price might go south, but i was confident that RHG would pull through over the long run(ie 1-2 years), hence no stop-loss. Alas, the westpac deal really pull a fast one on me.
On hindsight, stop-lossing RHG would be great, but i still believe that stop-loss doesn't fit into boring strategy of buy and hold.

IMHO buy and hold is the most dreadful strategy that I know and believe that it was created to serve the interests of lazy analylists and financial advisers. Hence the great losses on Telstra 2, HIH et al.

Got rid of my last adviser 5 years ago when a third of my portfolio was in an overseas Wrap and our dollar was rising from 50cents and I said barley charlie. If I had held and stayed with him I would be down at least 50% on that.

 

[blaze87]

i doubt buy and hold is the worst strategy.
if so, explain how warren buffet became the second richest man purely by investing

 

[explod]

i doubt buy and hold is the worst strategy.
if so, explain how warren buffet became the second richest man purely by investing

Warren Buffet researches the nuts off a company and then often goes about value adding by his input. The buy and hold does not account for misshaps, if a stock suddenly dives and you cant see the reason one should get out in my view.

Perhaps my statement was a bit of a stretch but to the newcomer the continued emphasis on buy and hold can if not qualified cause problems in overall approach.

A good stock brought for dividend return, yes whole different ball game but still a large drop with no explanation is a danger signal IMHO.

 

[motorway]

i doubt buy and hold is the worst strategy.
if so, explain how warren buffet became the second richest man purely by investing

A master of taking advantage of trends and technical positions esp

technical positions of overbought and oversold

that is what the Mr Market analogy is about

and doesn't that have an interesting lineage


It is about when You Buy and When You hold
After You have determined what.

The price you pay determines the future return..
The entry is the one thing You can totally control 100%


motorway