{"product_id":"stcov255trvs","title":"Stocks \u0026 Commodities V. 25:13 (54-57): Trading Vs. Buy \u0026 Hold by Glenn A. Barlis","description":"Trading Vs. Buy \u0026amp; Hold by Glenn A. Barlis\u003cbr\u003e\u003cbr\u003eHeres a look at the profit potential of trading\ncompared with buy \u0026amp; hold.\u003cbr\u003e\u003cbr\u003eNumerous strategies for accumulating\nwealth through stock investments\nhave held prominence\nover the years. Conventional wisdom\nused to be that you bought quality stocks\nand put them away to collect dividends and\ncapital appreciation. The late 1960s was the\nheyday of growth stocks, as popularized in\nAdam Smiths book The Money Game. In\nrecent years, the efficient market hypothesis,\nwhich essentially states that only average\nreturns are possible, has become the foundation\nof conventional investment strategy. The\npopularity of index funds and diversified\nportfolios is an indication of this influence.\u003cbr\u003e\u003cbr\u003eHowever, Technical Analysis of STOCKS\n\u0026amp; COMMODITIES readers do not easily accept\nthe efficient market hypothesis. Technical\nanalysis is an attempt to use stock\nprice and volume data to achieve returns\ngreater than offered by buy \u0026amp; hold. In this\narticle I will examine historical data on the\nStandard \u0026amp; Poors 500 to demonstrate the\nsignificant profit potential of trading over a\nbuy \u0026amp; hold strategy.\u003cbr\u003e\u003cbr\u003eASSUMPTIONS\u003cbr\u003e\u003cbr\u003eFor the purpose of this analysis, I will make\nthese assumptions:\u003cbr\u003e\u003cbr\u003e1. The Standard \u0026amp; Poors 500 can be\ntraded throughout the study period using\na single instrument such as SPY. To\nsimplify calculations, the price\/unit is\nassumed at a tenth of the index.\u003cbr\u003e\u003cbr\u003e2. Dividends are not accounted for in the\ncalculations, again for the sake of simplicity\nand for the lack of complete data. This understates the net return but does not\nchange the relative comparisons of different strategies.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133915722097,"sku":"\\V25\\C13\\249BARL.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_414d365d-70f8-4e5b-9ffc-320d118e6ce4.jpg?v=1739657025","url":"https:\/\/shop.traders.com\/products\/stcov255trvs","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}