Quote:
Originally Posted by cmdrost
You're way too young to be worried about principle loss. Look at what "W" just said:
"this is a good year but Im just getting over my (-29%) loss from last year
My lifetime on this account which is 10years old... is 27.9% gain
I had two bad years...2001 and 2008...rest have been great"
You are gonna have some bad years, but over the long run the market will outperform CD's, savings accts, etc.
The younger you are, the more aggressive you can afford to be.
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Financial theory holds that you can't beat the market - i.e. index funds are the way to go. Just look at the bet that Buffet has put in place with the hedge fund manager claiming he could beat the market over a 10 year span. I have one of those worthless MBA's and my best friend is an equity analyst. We go round and round all the time about the market.
My retirement account is strictly index funds, with some bond funds and preservation funds mixed in. On a individual basis, I am not a fan of buy and hold when it comes to stocks - this market has too much uncertainty.
Would advise picking a target for both gains and losses - use stop limits to cover your rear. I worked for an energy trading company and that strategy worked well...