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Passions
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I have to cultivate a better split personality. Last week I realized that when trying different strategies in different funds I can end up buying and selling the same stock at the same time. This is not illogical but it sure feels weird! After the Fed's decision my Strategy Lab's fund went up along with the rest of the market; however that did not inspire any changes. My almost 2-year old Magic Micro Caps fund was another story. When a micro cap doubles I sell half because that's what Max Bowser says to do. SIMC went almost to 100% on the post-Fed surge; so I sold almost half. Yes, this is the same SIMC I had recently bought for the Strategy Lab fund. Will the market drop this week? I almost hope so because I am holding a bit of cash to invest on the next downturn and I hate holding cash. Plus, part of me impatiently wants to get this bear market over with. My more rational side, however, does not want a sudden plunge but hopes for a long, gradual, slope for the continuing downturn. Giving companies and individuals more time to adjust will lessen the overall impact. No matter what happens it should be a good week for either Toro or Bruin. | ||
Comments (1)
I have to cultivate a better split personality. Last week I realized that when trying different strategies in different funds I can end up buying and selling the same stock at the same time. This is not illogical but it sure feels weird!
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I think that the paper Do Investors Trade Too Much? By TERRANCE ODEAN partially points to possible causes of excessive trading demonstrating that overall trading volume in equity markets is excessive by showing that it is excessive for a particular group of investors: those with discount brokerage accounts. These investors trade excessively in the sense that their returns are, on average, reduced through trading.
Would like to hear contrasting points too.
PDF paper
Posted by Armin Stuk | September 25, 2007 5:51 AM