2019
VTI > 27%
VGT > 48%
VYM > 20%
VPU > 20%
VTSAX > 27%
Why not sell them all?
Index funds are self-cleansing
Three common strategies buy and sell
Decide what is best for us.
Buy and hold strategy - strategy 1
Buy low and sell high - strategy 2
Day trading - strategy 3
Go over each strategy one by one in the following:
Buy and hold strategy
Buy and hold strategy - work best for index fund
dollar cost average - buy in long period of time
Buy high in stock market - now it is too high - buy any time, your horizon time is long.
You buy stocks on sale at that time.
25 times your annual expenses
Don't sell it all! Your money needs to grow
4% rule - withdraw 4%
Buy low and sell high strategy
Buy low and sell high - strategy 2
It is hard to do. You have to do it consistency. It is next to impossible.
Buying low and selling high can't be ...
Hypothetical:
Apple $24/share -> sell apple share $50/share; you may buy blackberry. It is very slippery slope.
Example: S & P index fund
buy 2000, sell 2007 when it is high.
It is better to leave it in.
During the recession, you will continue to buy and hold them.
Day trading
We know some day traders, lose one day or week. Like gambling, caught by the cycle.
Day traders is a full time job. How to maximize the chance?
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