I recently had the opportunity to get to know Ian Wyatt from SmallCapInvestor.com, and his small-cap (and overall market) knowledge is outstanding! He's written the below article just for Trader's Blog readers, and per my request has made a special offer to those interested in learning more about small-cap stocks. Please feel free to comment with questions, opinions, and insight!
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Conventional wisdom told investors that buying great companies at any price and holding them to eternity was the surefire way to growing a college or retirement fund. After all, during a secular bull market like that experienced from 1982 through 2000, when the Dow soared 1,409%, is was an indisputable strategy for almost guaranteed profits.
However, the days of “buy and hold” profits are now a distant, but fond memory. With the end of the century came the end of the 18-year secular bull market, the greatest creator of wealth in the last hundred years.
So today we enter a period of volatility where successful investors will be those who are willing to buy and sell stocks, turning the average investor into an active trader. MarketClub Trader’s Blog readers certainly know that the way to reap profits in this market is through buying and selling, not buying and holding.
Continue reading "Buy and Hold Investing Is Dead: Why Small Caps Work for Active Traders"

