Attention all Trader's Blog readers:
This timeless video was first shown to MarketClub Members on 9/18/09 and bears watching again.
One of the oldest myths about trading is the buy and hold myth. While this strategy may have worked in certain markets at certain times, I do not believe we are in a time frame where this strategy is going to meet with a lot of success.
The world around us is changing rapidly and therefore it is important to have strategies that can change with this new regime.
In today’s video (first shown on 9/18/09) I’m going to show how the buy and hold strategy is flawed when you compare it to our “Trade Triangle” technology. I think you will be surprised at the results and how well you can do using this simple approach to markets.
There is no need to register for this video and of course you can watch it with my compliments. I highly recommend watching this video today, otherwise you risk missing out on a formula that provides a market proven strategy.
Enjoy the video and please give us your feedback on this blog.
All the best,
4 thoughts on “Investors and Traders Are Still Talking About This Trading Video”
Hello Adam -- I first want to say I'm a big fan of Marketclub and really appreciate how much I have learned watching your videos. While I'm in my 30s and have had mutual funds for about 10 years, I finally feel like I am beginning to understand the market especially the technical side so thank you.
While the trade triangles certainly paid off for SPY in 2008 and 2009. For 2005-2007 (or even going back for the S&P index to 2003), if I would have followed a buy and hold strategy, I would have done considerably better than being long in the market only when there were green monthly and weekly trade triangles and short when there were red monthly and weekly trade triangles.
On the other hand, if I would have used the trade triangle on USHYX (a 4 star high-yield corporate bond fund), I would have done much better than buy and hold.
I'd be interested in your thoughts on why buy and hold worked better for S&P over the 2003-2007 period. I also wonder if the trade triangle work better for some markets than others. Thanks in advance for the response.
P.S. Another thing I love about Marketclub is the ability to look back many years and see what strategies worked and didn't work.
Thank you for your kind comments.
I think it is very simple to cherry pick time periods like you mentioned like the 2003-2007. Yes a buy-and-hold strategy would've worked out better than our approach. The reality is one doesn't know that at the time. What the trade triangles provide is a solid market proven game plan to survive anything that comes down the pike.
Many of our competitors tend to just cherry picked and show you the best of the best results, then when it doesn't work like what was shown you, you become disillusioned. At MarketClub we show you the realities of the market not every trade is going to be a winner. Some trades don't work out that's a given in any serious investment vehicle, The key is to manage those trades using a program like our trade triangle technology.
I hope this addresses your question.
All the best,
Thank you for your feedback.
I believe you are right, once the market bottoms out which I believe will be several years from now we will go into a economic upside that will benefit not the baby boomers but generation X.
Look for a blog posting in the next few days that specifically addresses this scenario.
All the best,
Actually, I believe that once the market has bottomed out (which, admittedly, may take a couple of years) we will enter the upswing of a new 50-year market cycle. Buy and hold may once again work pretty well for about 10-15 years or so, in my opinion. It'll be a good time to buy an index fund for your kid or something like that.
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