Predicting the future by looking at the past.
The Problem:
You decide to invest in the stock market and buy a few shares of XYZCorp, you suddenly wake up one day and decide that you are going to day trade to capture the profit from the price movements but have nothing else to guide your decision but your gut, technical analysis is also starting to look interesting even though it all sounds a little fishy*, you trust fundamental analysis but see it more as a long term tool, you wish there was a reasonable way to capture all these ups and downs…
* Note: I've never been a fan of Technical Analysis but to each its own, my main beef is that it lacks a proven track record and hinges on a mostly absolute certainty that the past will repeat itself; and that there are rules governing behaviors across markets, exchanges and participants we can describe, yet the basis for these rules is usually not explained, a fertile ground for snake oil.The Solution:
Don’t ! … You stand a better chance of turning a profit in your investment if you Buy and Hold than if you day trade; this strategy (Buy and Hold) while not without risk (global/local economy, market, sector, company) has a few things going on for it that others don’t:
