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All Gains in 2018 Are Officially Gone As Of Wed. 11/22/18

  1. #31
    Join Date
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    bayside ,queens , ny
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    one thing i want to add is we all hear the mantra buy low and sell high . no other mantra has lost more money for investors than trying to follow that silly rule and TIME THINGS .

    like i said we thought down 2000 points was low in 2008 . so you had those scrambling to get in , and then we headed down another 4000 points . trillions were lost as many hit stop losses , or got scared and panicked and sold out when markets went the other way .

    an object in motion stays in motion -until it hits something -so odds are pretty good trying to catch that falling knife has the next stop lower and lower .



    so what has made more money for investors then any other mantra ?

    buy high -sell higher .

    the trend is your friend and a market going up tends to stay going up until it hits something .

    odds are after you buy , you are headed up , not down . you would have to be that unlucky guy at the end of the line the day markets hit something and reversed .

    this is a concept few actually realize . more money is made by buying high and selling higher then most ever make trying to buy low and selling higher just because fighting the trend can be so hard and painful mentally .

    think about the fact that if someone is going to time those buys , they need to get out of equities or some equities when things are still up .. that usually takes a nervous nellie type .

    to buy back in when markets are plunging with no bottom in site takes balls of steel .

    rarely does one person possess both qualities .

  2. #32
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    Jul 2016
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    bayside ,queens , ny
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    i thought this pretty interesting , it shows how going through all the gyrations to try to duck the down draft will likely just shoot you in the foot or have you miss the biggest most influential gain days because they happen very early on , long before you see anything changed .

    University of Michigan Professor H. Nejat Seyhun analyzed 7,802 trading days for the 31 years from 1963 to 1993 and concluded that just 90 days generated 95% of all the years’ market gains — an average of just three days per year .

    https://www.ifa.com/12steps/step4/mi...nd_worst_days/

  3. #33
    Join Date
    Oct 2016
    Posts
    1,123
    What are investing goals? Is buying and selling for capital gain the objective or long term dividend reinvesting the goal. There is the very real tolerance for risk, not investing and buying safe works for many. It comes down to different strokes for different folks. No matter the goal open discussion can help.

  4. #34
    Join Date
    Jul 2016
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    bayside ,queens , ny
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    bottom line to it all is total return . how the money gets distributed out to us is irrelevant . we need enough appreciation so that we can keep selling some shares in our portfolio to keep the income stream going . if it is coming from dividends we need the same appreciation to offset the set back with every dividend.

    i have a mix of both . some funds spin off dividends and gain distributions while others just have gain distributions .

    tax wise i prefer my income from appreciation since unlike the dividend which is taxed on 100% the non dividend payer is only taxed on the gain portion .

    but it really does not not matter because to generate the same income you need the same total return either way

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