Mouth Breather wrote:
seattle prattle wrote:
I think you're on to something there - the short term trade is how to play this market. The part that gives me a royal smack down is when i try to take long term positions, because just as soon as i do, the market starts going in the opposite direction and rather significantly, and i end up bailing for a small loss (again....).
Why bail? Just hold on and it will go back up. It always does.
I have two portfolios. The vast majority resides in the portfolio is the buy and hold and will not get touched. It has done quite well for me. So, for the most part, I agree with you.
The other portfolio, is all equities and I will actively trade portions of it to varying degrees, including a very little momentum trading, and selling if the market goes into a protracted free-fall.
My current strategy on active trading is to do a mirror image of the buy the dips trading i've done for years. Tried it today near the opening and it appears to work thus far. That's inline with Rackets advice to wait out your target because it eventually comes around. And by the looks of it, it comes around about twice a day.