tag:blogger.com,1999:blog-30128229.post9214089728291632409..comments2023-09-30T07:11:55.493-06:00Comments on MarketFN.com: Buy and Hold RevisitedInvestment Househttp://www.blogger.com/profile/14771320644915759241noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-30128229.post-40526629296040212882008-11-24T04:14:00.000-07:002008-11-24T04:14:00.000-07:00Thanks for writing, milalo. I'm glad to hear you a...Thanks for writing, milalo. I'm glad to hear you are using a strategy that works for you. A moving average crossover can be a successful method. There is always an issue with moving averages in that they lag somewhat and in general, the longer the MA, the greater the lag. Traders also need to be aware that MA strategies can also be subject to whipsaws when a stock is trading in a relatively tight range. Nevertheless, I have always liked moving averages and crossovers.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-43286602503114849482008-11-23T12:42:00.000-07:002008-11-23T12:42:00.000-07:00Thanks, Milt. How is Robert?Bill KraftThanks, Milt. How is Robert?<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-32376093200782471732008-11-23T12:41:00.000-07:002008-11-23T12:41:00.000-07:00Thanks for writing, Anonymous, but I just can't ag...Thanks for writing, Anonymous, but I just can't agree that buy and hold is right for any let alone most. You are definitely right that most buy at the wrong time and sell at the wrong time. Maybe it is an "unfulfillable" wish, but I would sure like to see investors spend a little time learning how to invest their own money rather than take the "it'll come back" route.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-90842149978924037202008-11-23T12:40:00.000-07:002008-11-23T12:40:00.000-07:00Good idea on an article about short selling Anonym...Good idea on an article about short selling Anonymous. May be pretty late though.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-23868646026906580772008-11-23T12:39:00.000-07:002008-11-23T12:39:00.000-07:00Some important points, Chris. My new book, "Smart ...Some important points, Chris. My new book, "Smart Investors Money Machine," speaks to investment strategies for investors with differing risk tolerances and at various ages. There is definitely a way for almost everyone to create streams of income while staying within their own comfort level, but as you say, they must be willing to learn and understand.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-88473473102249959352008-11-23T12:38:00.000-07:002008-11-23T12:38:00.000-07:00Good point about the entry signals, Anonymous. Of ...Good point about the entry signals, Anonymous. Of course, the strategies also apply to exiting bearish plays so not everyone is out. Many are involved in bearish plays and they, too, need to have an exit strategy. We just need to keep in mind that we are well served by having our exit strategy in place before we ever make the entry.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-82852546619855118352008-11-23T12:37:00.000-07:002008-11-23T12:37:00.000-07:00Hi Sue. The bid and ask prices on options are per ...Hi Sue. The bid and ask prices on options are per share and a contract usually (though not always) consists of 100 shares. Option trading can be risky, but there are many ways to reduce risk and in certain cases even to eliminate risk using options. May I suggest you get a copy of my book "Trade Your Way to Wealth" (cheapest at TradersLibrary.com) to help understand risk management and money management using options. I include an Appendix that sets out many strategies and their relative risk as well as the relative amount of capital required.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-30708188483405402842008-11-23T12:34:00.000-07:002008-11-23T12:34:00.000-07:00This comment has been removed by the author.Bill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-53072136264136208602008-11-23T12:33:00.000-07:002008-11-23T12:33:00.000-07:00Interesting comment, Anonymous. We are certainly i...Interesting comment, Anonymous. We are certainly in a new environment in that the average retail trader has abilities he didn't have 20 years ago such as the ability to trade quickly and on his own, the affordability to trade options, and the ability to acquire information very quickly. However, I'm sure that getting out of long positions was equally desirable in the relatively regular downdrafts the market has experienced including the crashes.<BR/>Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-14756365401560497652008-11-23T12:27:00.000-07:002008-11-23T12:27:00.000-07:00Bill, I am very pleased with the fact that you cal...Bill, I am very pleased with the fact that you call a moving average cross as a signal to take profit or to cut losses. I am watching the charts already for 5 years and I try to take action when the 5 ma crosses the 20 ma.<BR/>When you play this strategy on the monthly time frame and you have the guts to trail the cross you can buy and hold for a long period in my opinion. The same strategy is playable on a 60', a 5' or a 1' timeframe.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-17008636384979519272008-11-23T08:09:00.000-07:002008-11-23T08:09:00.000-07:00How about a good long article on the rewards of sh...How about a good long article on the rewards of short selling. All stocks are trending down and they have been over several months.<BR/> <BR/>Thank you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-8957615920550745872008-11-23T08:08:00.000-07:002008-11-23T08:08:00.000-07:00Buy & hold is right for most, since not very m...Buy & hold is right for most, since not very many people are good at timing. If someone was good at timing , they could buy & sell & rebuy & resell, but most buy after rally & sell after decline , which is the opposite of buying low & selling high.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-2696339198037535842008-11-22T20:47:00.000-07:002008-11-22T20:47:00.000-07:00totally agree.... in Hedge Fund Trading Secrets Re...totally agree.... in Hedge Fund Trading Secrets Revealed (pristinepublishing.com)..author Robert Dorfmam exposes the lies Wall St. sold everyone about buy and hold.... great bookAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-18255031102861867362008-11-22T16:33:00.000-07:002008-11-22T16:33:00.000-07:00People buy and hold because they are either lazy o...People buy and hold because they are either lazy or they don't know what else to do. It's very sad to see some people hold on to old investment ideas and loose a significant amount of their retirement. These old ideas come from almost every money manager out there. They seem to have 2 plays in their playbook, 1)"just hang in there and the market will come back" and 2)asset Allocation. Asset allocation really doesn't work when most of the sectors are tanking. They could be right about the market bouncing back, but how long will that take (1 yr, 3yrs or 7 yrs). Meanwhile I've lost the opportunity to preserve or grow my capital. They say that the S&P out performs 80% of the mutual funds. This is not true because all fund managers are bad investors. It's because their fees and the cost of living (time value of money) erode at your profits. Each investor needs to hit there own emotional bottom. They need to become so upset that they are willing to take control of there own investments. I'm convinced that most investors can beat the S&P dramatically, but it takes desire and education. As an investor I need to understand, money management, entry/exit signals methods to protect my capital. There is an investment stratagy for every age and risk tolerance (buzz word), just pick one that fits you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-9240089494207628052008-11-22T13:00:00.000-07:002008-11-22T13:00:00.000-07:00Bill suggests 3 exit signs; but everyone except th...Bill suggests 3 exit signs; but everyone except the buy and hold investors are already out. The real question now is when do we get back in? Let us reverse the 3 exit signs: Get in when resitance brakes, get in when the 50 ma crosses above the 200, or get in when price crosses above the 50 ma.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-37234073847307914882008-11-22T12:57:00.000-07:002008-11-22T12:57:00.000-07:00In the past I've used the tried and true buy and k...In the past I've used the tried and true buy and keep however I am also open to trying options but I can't make heads or tails of these. Most people say you have to have thousands of dollars to participate and the chance of losing it all is better than 50/50Is it possible to trade options starting with 1 or 2 thousand and is the bid or ask price per contract (which I believe is 100 shares) or per share?Suehttps://www.blogger.com/profile/13623576382444242584noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-45219173181941921882008-11-22T10:26:00.000-07:002008-11-22T10:26:00.000-07:00Buy and hold was the generally accepted and safest...Buy and hold was the generally accepted and safest way to build weatlth for the last 75 years. Most people who made frequent, in and out, trades, trying to time the market, were losers during this time. However, like most things, times change. I feel we are in a new environment for the stock market and the time of the 401K and pension fund trusts are unfortunately...overAnonymousnoreply@blogger.com