“History has shown that inflation is temporary. History has shown that bear market are temporary.”
If those two statements are true, then so are their opposites. The good times always end, and then the hard times return.
As for you’re being anyone to give anyone else advice how to invest, do you want me to repeat the exercise I ran a couple weeks ago in which I showed just how far this year you’ve let prices move against most of your holdings?
Yes? OK, Then here’s a clear example of What Not To Do. One of your chief holdings is Disney. Today, it closed up a piddly $0.06 cents compared to the SP500’s gain of 0.22%, the Naz’s 1.43%, and the R2k’s 0.98%. The closing price was 94.34, right? which is down by roughly (-52%) from its high just over a year ago of 197.16, right?
So, Yes. You eat your own cooking. You tell investors that “losses have to be endured to obtain even bigger gains”. But is that really true? Why not harvest profits as stocks hit their highs and then buy 'em back later when they’re trading at more favorable prices?
Yes, that’s just another way of doing things, and it cannot be argued that either is better. But it can be pointed out that either method might not be a good match for particular investors. Me? I hate for prices to move against me or to leave money of the table. I want to be in close to a bottom and out close to a top, a style of investing well described in Ben Grahams’s classic intro to value investing, The Intelligent Investor.
25 Years? That’s so cute. I bought my first stock when I was ten, doubled my money, and thought investing was easy. That was 68 years ago, which means I’ve been investing a long, long time and still don’t know half of what I should, because this investing/trading stuff isn’t easy. Always, your counterparty to every trade is meaner, faster, better capitalized, and better informed. Plus, the investing/trading landscape is constantly changing.
If you’re now saying of Ed and his quandary that he shouldn’t have bought the stocks he did, then why didn’t you warn him away from the getgo? That’s exactly why I’m not a fan of TMF and its methods. You get newbies into situations they should have been warned away from, which is the endless sting of no-earnings companies that TMF favors. Yeah, maybe, one of these these days they’ll turn a profit. But meanwhile, the losses mount up, causing both financial and emotional damage to them who jumped into the stock way too early and then also failed to trail a stop.