RE:RE:RE:RE:Josh & Eric are tradersJohnnyDoe wrote: Snowballer wrote: The only measuring stick that matters is your own. Some stocks are long holds others can and maybe should be traded.
My priority is now about managing risk rather than beating someone or some index's return (even though I definitely beat average returns). I now only trade 20% to 40% of my portfolio and keep the rest in cash. I use less of my capital to make great gains (repeatedly as best I can) instead of investing all of my capital to "be invested" which exposes me to significantly higher risk, negative opportunity cost and unrealized losses. Yes of course I could get lucky and make a huge amount of money (and far exceed trading profits) but my downside is also huge especially in a bear market, tightening cycle. Obviously the financial cycles are important in making this decision. I got stuck in BTE for years. Now I'm a ninja and prefer to jump in and out getting those 3 to 10 percent gains sometimes multiple times per month.
Im glad I took my big returns from BTE and don't feel the need to put so much on the line anymore.
I've doubled my portfolio these past 3 years. Now I just want to create dividends and return to cash and repeat. 2022 was a great success. My goal is 30% to 50% returns in 2023. I may do a lot better than that but more importantly to me is always being flexible having tons and tons of cash.
Hope that was useful. There is no right or wrong strategy.. I just push back when I get ridiculed by some posters here. I manage my wife's cash. She's long and I trade mine. It's a good balance that works for us.
dllscwbysfn wrote: Snowball,I like your opinions. I am long but would contemplate trading if I thought i could make better money. Earlier today i asked you what your returns for the year were. You did not answer. Mine being long with BTE is about 85% YTD. Are you beating this?
your key statement is there's no right or wrong strategy. Generally that's true. Historical data points to investing versus trading as a more lucrative strategy which I'm sure you know. So you mentioned doubling your portfolio in the last 3 years. I've done quite a bit better than that. And it's not hard to have done that. Not hard at all. If i was 10 years younger I'd suspect I'd be looking at 10 bagging the entire portfolio. I too manage my wife's portfolio and wouldn't risk more than 30% in oil in the spring of 2020. That 30% in oil went crazy
You were asked a direct question and didn't really answer it. You did though reference a double. I suspect most of the longs here have done much better than that. To each their own. But you're advocating day trading like it's all apple pie and ice cream. It's not.
Well put mate. I will add that I too trade "certain" stocks BUT not if I think they are undervalued OR that they are indicating a bullish tendency. I trade those with high volatility/beta OR on a news item. Case in point, bought Park Lawn at $22 last week before earnings and I am up 25% on that alone. Now I will sell as I have another company in sight. These flips are done with less than 10% of my portfolio as holding long tends to be more lucrative ON THE RIGHT STOCK than trading. Cheers!