The "Stock Trading Riches" Investment System

[OldAIMGuy]

Hi W, Re: Charting and Trading vs systematic investing.......

Of the three common objectives of investors, charting and short term trading only really addresses one - volatility capture. It ignores the possibility of gains through long term price appreciation and dividend capture.

Total return is not mutually the realm of any one of the three common objectives. To use one exclusively while ignoring the others is most likely to expand portfolio risk and not total return. Solid work on portfolio design for long term price appreciation and dividend capture in conjunction with a systematic volatility capture mechanism has a higher likelyhood of enchanced total return over the long run. This is simply because it's a stool with three legs instead of just one. Damage from errors becomes less important because the total return "load" is more evenly distributed.

Best regards, Tom