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Originally Posted by QTbucks_Mark
Then again, it's currently a bullish market around here, so it doesn't mean that much.  |
Do not forget you can also make money in falling markets. Get a margin account that allows you to short sell stocks so you can pretty much run your portfolio market neutral. The market wizards using this strategy really don't care where the market goes, their goal is to make a profit every quarter. In my book it's more important to always have results >0 (every week, month, quarter whatever) than beat some benchmark (like the NASDAQ or SP500). What good is it if I did 15% better than the SP500 if the same index tanked 50% in a year?
On the other hand I will be happy with 20% in a year when the market does 75%. I will not cry one tear. And I laugh all the way to the bank next year when I'm up another 20% and the market is down 35%.
Remember: 50%+50%-50% is WORSE than 5%+5%+5%. Whoever understands this is set to make money in any market conditions.