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Subject:  Re: Invesment strategy: buy & hold? Date:  9/19/2013  3:43 PM
Author:  joelxwil Number:  73103 of 88047

Well, I cannot comment on the particular stock selections, but buy and hold is a really bad strategy.

After all, consider how much you would have to know to pick a stock that will be good for even 10 years. In addition to extensive information on the company, you would have to be able to know the economic conditions in the future. Maybe things will get bad, and stocks should be avoided for a while. Look at the charts of the averages between March 2000 and March 2003. Well, you might have gotten in at the bottom if you were really lucky, but that was a really bad period.

To put it another way, there is no "set it and forget it" strategy that works well.

My strategy has been to buy and sell based on technical indicators from a list of stocks with allegedly good fundamentals. I say "allegedly" because it is really impossible to know just how good are the fundamentals, and besides things can change.

Buying and selling IWM based on the (8,55) moving average crossover beats buy and hold, and lessens the drawdowns. That is really simple.
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