Timeline for Why doesn't common investment advice include the idea of pulling out of the market during downturns?
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
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| Dec 2, 2021 at 11:30 | comment | added | Will | @JTP-ApologisetoMonica in the era of high-frequency trading I'm not sure that there's any meaningful difference in how effectively you can time a market by observing its price at set intervals whether that's a short interval or a long interval. The only difference is how frequently an actionable change in price under the strategy will occur and so how quickly erratic results in the strategy even themselves out. | |
| Nov 30, 2021 at 17:35 | comment | added | JonathanReez | @Andrzej yep you could only really do any strat with fully automated scripting. | |
| Nov 30, 2021 at 10:42 | comment | added | Andrzej Doyle | I'd also add that once you start adding active elements, investors are more likely to deviate from the rules they've set themselves too. "It's only fallen 3% so far, but it's obvious this is a the start of a downfall so I'll sell now..." One of the major benefits of passive investing is that it's much harder for your emotions to sabotage you. | |
| Nov 29, 2021 at 20:30 | comment | added | Bob Baerker | JTP - You're dead on in that if you are going to add 'active elements' then checking every month is inadequate. It doesn't matter if you're defending long positions or you have short side participation to the downside, you need to pay more attention than that. If one doesn't want to invest that time then just ride it out and take what the mark gives you (or takes back). | |
| Nov 29, 2021 at 17:21 | comment | added | jamesqf | @JTP - Apologise to Monica: For some (perhaps many) of us, that tiny bit of daily attention isn't all that tiny. | |
| Nov 29, 2021 at 15:46 | comment | added | JTP - Apologise to Monica♦ | An upvote, but "every month check the direction"? The swings occur more quickly than that. Implementing the strategy is simple, but requires a tiny bit of daily attention, if only to change one's sell order as the market moves up. | |
| Nov 29, 2021 at 13:34 | history | answered | Andrew is gone | CC BY-SA 4.0 |