Day Trading Vs Swing Trading Vs Long-Term Investing
The subsequent drama that emanates from a debate of people in the market, with different trading strategies, can sometimes be comical. Each trying to convince the other that theirs is the best. Throwing big names around Soros, Warren Buffet et al lol
Here's a narrative from our very own Kenyan Warren Buffet, Charlie Munger, and a subsequent comment, that got me here
The simple moral of the story, time is your friend in the market. You don't have to be particularly bright or analytical if you are a long termer. Charlie Munger for example was not the sharpest tool in the shed but he latched on to Buffett's tail and waited 30 years and the rest is history. Makes a cruel mockery of the Elliot Wave crew :sweat_smile:
Show me a TA adherent over the long term and I will show you poor man who keeps losing his shirt from market cycle to market cycle. TA is fairy dust. The only more disastrous thing than a TA adherent is one who daytrades! In fact I can bet my bottom shilling that if you get a six year old to use darts on the financial section of a newspaper to make stock picks that they buy and hold for 20 years, the kid would probably make more money over that period of time than all the TA adherents in Kenya combined.
Pretty harsh language
Well this is my take.... the calamity here, and the reason why Mr Munger's strategy can be discounted, is that most of us, DON'T have 30 years! We are already in our 30s and 40s, trying to navigate the murky waters of the financial markets, all the while juggling that with career and family.
If things are going south, Technical analysis says so, history says so, a correction is imminent, and one holds on because of some principle not edged on stone... Foolhardy if you ask me. Why this compulsion of fitting things in a box? Sometimes circumstances force one to trade, sometimes to swing trade and sometimes to buy and sell only the same stock (I know some would argue that isn't investing, yet one might end up with an even more number of asset)
What is your take?