Replies to post #218058 on DD Support Board and Research Team

[bar1080]

Intelligent investors are such rare birds on IHUB. Years ago IHUB had some, but now most locals are either terribly afflicted gambling addicts or obvious shills.

Do you know why I say "The More You Trade, The More You Lose" © Bar1080?" It's because several academic studies show that stocks investors buy usually lag the market and stocks they sell usually outperform. That is, most people get their buying and selling backwards. They buy at the wrong time and and they sell at the wrong time. The more they trade the more they suffer.

You understand the powerful tax reason for rarely trading. I don't know how old you are or whether you have kids, but the American tax code's death step-up is a VERY powerful wealth-sheltering device.

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On Frequent Trading

"One good way to lose your shirt in the stock market is to trade very frequently. It can happen if you buy every exciting stock you read about and frequently have to sell out of some in order to buy into others. That reflects a lack of confidence, patience, and discipline -- three factors that are helpful in investing success. After all, if a stock was promising enough for you to buy shares, you should give it time to perform -- and in many cases, that can be years."

According to an academic study of frequent traders by Brad Barber and Terrance Odean, the most active traders reaped the lowest returns. Indeed, between 1992 and 2006, fully 80% of active traders lost money and "only 1% of them could be called predictably profitable"

https://www.fool.com/retirement/2016/12/28/3-ways-to-lose-all-your-money-in-the-stock-market.aspx

[bar1080]

I suspect many stock brokers have have gambling problems. But I have known a few good ones.

One very old broker used to say: "I'm not here to make clients rich. My task is to keep clients from going broke."