Minimizing the number of decisions improves your yield.
1 decision to buy a good stock in 2014 would have given you double digit CAGR compared to dozens of algorithmic buy/sell trades executed on a daily basis.
There is sophistication in simplicity.
1 decision to buy a good stock in 2014 would have given you double digit CAGR compared to dozens of algorithmic buy/sell trades executed on a daily basis.
There is sophistication in simplicity.
Subsequent averaging in a stock you've bought once doesn't count as a decision. It's just the reinforcement of the initial decision, as and when fresh salary becomes available to you.
Trimming on rise, booking partial profits, re-entering these gymnastics counts as a decision.
Trimming on rise, booking partial profits, re-entering these gymnastics counts as a decision.
Take 1 good decision & keep reinforcing it through the decade. Don't play bull and bear at the same time. Be a buyer throughout the decade.
If you feel like the market is in a bubble, sell everything and exit, that's again 1 decision. Don't take that decision on a daily basis.
If you feel like the market is in a bubble, sell everything and exit, that's again 1 decision. Don't take that decision on a daily basis.
"I bought stocks in 2008 and moved it all to risk-free bonds in 2030 when my retirement corpus was met" is the clean execution of just 1 decision.
Don't turn it into a thousand micro decisions throughout these 2 decades, by trying to buy/sell/switch stocks repeatedly.
Don't turn it into a thousand micro decisions throughout these 2 decades, by trying to buy/sell/switch stocks repeatedly.
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