Comments on: Befriending a trend http://blogs.reuters.com/globalinvesting/2009/07/20/befriending-a-trend/ Insights behind the investment headlines Thu, 20 Jun 2013 12:13:10 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: goldstocktrades.wordpress.com http://blogs.reuters.com/globalinvesting/2009/07/20/befriending-a-trend/comment-page-1/#comment-2076 goldstocktrades.wordpress.com Tue, 21 Jul 2009 00:10:00 +0000 http://blogs.reuters.com/globalinvesting/?p=2268#comment-2076 I agree with you a 100%. Sticking to a simple discipline such as this protects investors. This last week shows how nimble an investor needs to be. I agree with you a 100%. Sticking to a simple discipline such as this protects investors. This last week shows how nimble an investor needs to be.

]]> By: mackmichaels http://blogs.reuters.com/globalinvesting/2009/07/20/befriending-a-trend/comment-page-1/#comment-2073 mackmichaels Mon, 20 Jul 2009 18:07:41 +0000 http://blogs.reuters.com/globalinvesting/?p=2268#comment-2073 Everything looks better looking back and trading past data. The real problem with momentum trading and using technical indicators is who are you talking to? Large institutions or individual investors? Given the $100 example, I assume it's meant for small investors. The problem is small investors get involved emotionally with every tick. And very few will blindly execute trades based on software. The only way you can execute trade after trade with extreme discipline, win or lose, is automatically. And most small investors won't do that. Buy and hold is suggested, not because it's better. But because most investors don't have the discipline or stomach to trade in and out of positions. Everything looks better looking back and trading past data. The real problem with momentum trading and using technical indicators is who are you talking to? Large institutions or individual investors? Given the $100 example, I assume it’s meant for small investors.

The problem is small investors get involved emotionally with every tick. And very few will blindly execute trades based on software. The only way you can execute trade after trade with extreme discipline, win or lose, is automatically. And most small investors won’t do that.

Buy and hold is suggested, not because it’s better. But because most investors don’t have the discipline or stomach to trade in and out of positions.

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