Replies to post #1619 on ETFs, Leveraged ETFs, Sector Funds

[No-Quarter]

Congrats. Taking a profit is never a bad thing.

These coins may move too fast for what I am trying to do. Time will tell...

[No-Quarter]

I just read todays update.

I smiled when I read this as it is the essence of what I am trying to do too.

That’s a big big problem. Momentum works because by riding the winners you are holding the hot coins. But nobody likes a losing coin, so holding them is likely to underperform the market.

For a neat illustration this is a chart of two different stock trading systems going all the way back to 1800.

Trading system rules:

System 1:

On the first day of the month list all the stocks traded, ranked by the last 12 month returns. Buy the top 1/3, equally weighted.