Quote:
Originally Posted by disneysteve
I just want to be clear on this.
Buy and Hold does not mean Buy and Forget About.
You still need to monitor your holdings whether they be stocks, bonds, real estate, gold, pork bellies or frozen orange juice futures. You still need to rebalance periodically to stay in line with your chosen asset allocation. You still need to be mindful that a stock or fund that was a good choice when you invested may no longer fit your purposes at some later date.
I think a lot of people misunderstand all of that when they hear "buy and hold". Not suggesting you don't understand, Scanner, but others may not.
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Mutual funds (buy and hold) strategy has been proven to not work, especially with them dropped 40% to 60% last year.
I run cooltrade robotic trading software and simply takes 10% profit anytime a position goes up or down 10%.
Buy and Hold and hanging on and hoping a stock will rise, when all they are doing is going up and down, is completely illogical. Look at QCOM, it has gone up and down for the last 10 years (between $35 and $55). You could have traded that stock 100's of times. Hard to do manually, but a no-brainer with robotic trading software.
Keith