Quote:
Originally Posted by jasonn
I don't think I have any special skill to have exceeded the Mutual Fund so easily; it's most likely because (1) it's a crazy Bull market and everything is going up and (2) I had actual stock picks which rise in value much more quickly than the 20 or so ETFs/index funds of the Mutual Fund.
Quick questions guys, do you guys trade very frequently? Does trading a lot create a mess for your accountant at the end of the year? Is it really worth it to trade frequently with the trading fees and short term capital gain tax rates? Are you guys just betting really big to make it all worth it? How many stocks are you guys invested in right now for how much capital?
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You are essentially buying high beta stocks (stocks with more octane than the overall market). This works until it doesn't, and when it doesn't these stocks pull back HARD
here's the formula for long term investment success: own a basket of high quality companies. At least 20. This is roughly the minimum for diversification. Don't trade them unless you have a thoroughly researched method for doing so.
You can save yourself the trouble of picking those companies by buying an ETF or fund. If it sounds like back to square 1, it is. Trading stocks successfully isn't easy. Use limited capital during your learning process to avoid costly mistakes. Learning process takes many years of consistent study and experience. MANY YEARS. There are no shortcuts. good luck!