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Actually I have made far more money buying when everyone else was selling. I would say if it's as easy as you make it out to be, no one would ever lose money.
Without access to your complete trading records it's impossible to prove either way, but the numbers are not on your side.
Exactly. On occasional, people do beat the market - successfully. And a very, very few people manage to beat the market consistently. I can't gainsay their success. But they're rare.
Most of us would improve our records if we merely settled for average. A paradox?
Indexing is good for most people, but for those who are willing to work at it beating them is pretty easy.
Beating the index is "pretty easy"? Over some short time periods? Sure. Over the long haul? Absolutely not. If you have that talent you should be getting 2 and 20 and turning down new clients.
Beating the index is "pretty easy"? Over some short time periods? Sure. Over the long haul? Absolutely not. If you have that talent you should be getting 2 and 20 and turning down new clients.
Well it's a matter of degree too. Doing the Peter Lynch thing where you never have a down year seems to be almost impossible, but having a down year followed by a massive return seems very doable.
Had to look up 2 and 20, but it seems like great work if you can get it. You know somebody?
Exactly. On occasional, people do beat the market - successfully. And a very, very few people manage to beat the market consistently. I can't gainsay their success. But they're rare.
Most of us would improve our records if we merely settled for average. A paradox?
I've had some really good years. I'm not stupid enough to think I will beat the market over the long term though. I rolled my "winnings" into a fund and will most likely just keep that from now on.
The nice thing is as holdings get larger you don't need as much of a return to throw down some serious gains $$ wise.
Putting monies into a broad index fund is a wise move, IMO. You can literally set it and forget it, it requires no special tending. Easy peasy no muss, no fuss.
Putting monies into a broad index fund is a wise move, IMO. You can literally set it and forget it, it requires no special tending. Easy peasy no muss, no fuss.
Yes, that's wise for most people. The OP is asking about small cap & even putting it into a fund or ETF isn't completely set it and forget it as they are constructed very differently from one to the next. So I suppose as long as you do your homework up front you should be fine.
And if you want the hands off approach with allocation you could probably do okay looking at people who specialize in that like the Ivy League schools in the US. Then make a judgement call about whether or not their needs are similar to your needs.
Bottom line is if you can't pick winners 66% of the time you probably should be in funds.
Personally I don't have the knowledge or willingness to devote myself to stock picking. And there's no reason for me to have to be on that path as there are other valid ways to grow a portfolio that don't require having to pick individual stocks.
I have a small cap fund in my portfolio. It does it's thing to help provide diversification.
Personally I don't have the knowledge or willingness to devote myself to stock picking. And there's no reason for me to have to be on that path as there are other valid ways to grow a portfolio that don't require having to pick individual stocks.
I have a small cap fund in my portfolio. It does it's thing to help provide diversification.
Yep, lots of ways to make money. Just passed a milestone of my own today - 100% winning picks for the year. Now let's see how long that lasts...
check out the rally in Small Caps today, S&P600 is up 2.72% !!! Russell 2000 right behind at 2.62%.
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