Buy and Hold Myth Part 5

Doctrader — Sat, 03 Oct 2009 11:39:21 +0000

The Buy and Hold Myth, part 5, looking at next week, the market will have price reminisces of last years stock market. Now, if you thought the market reached it’s low last year, you still suffered losses through the low in March 2009. How would you like to learn how to avoid these unnecessary market drops, you will have to learn technical analysis to time the market during these short term cycles. My blog post in Jan, 2006, I explain how the market media matrix manipulates into thinking there is always and eternal bull market. I reviewed Jane Bryant Quinn article about the theory of “buy and hold” for long term investors. I think you will find it interesting to know that if you missed the best 90 days of market gains, you would have a paltry$2.70 for every dollar invested. If you followed the “buy and hold” theory, you would have $75 for every dollar invested. Now that sounds like a good case for buy and hold, right?

However, if you would have missed the worst 90 days of the market, your gains would have been $1694! I guess Wall Street’s “market media matrix” does want you to know about that!

A. buy, hold, hope for 42 years for 90 good days in the market, results $75.
B. time the market yourself and miss the best 90 performing days, results $2.70
C. use Doctrader’s “red signal line” to avoid the worst performing 90 days of the market, results $1694.

Raise your hand if you can see which choice you want!

Introducing the “red signal line” to determine if the market are in a long term bull market or a long term bear market.

Technorati Tags: 9 myths, Analysis, baby boomers, bull market, financial, investing, Investment, market, market media matrix, Part 5, technical analysis

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Buy and Hold Myth Part 5