3 ms·
Some stock traders try to buy stocks based on news/rumors, other based on analyzing fundamentals about the company, others by looking at graphs and predicting p
by lnanek2 6y ago
Some stock traders try to buy stocks based on news/rumors, other based on analyzing fundamentals about the company, others by looking at graphs and predicting patterns. They all hate each other.
- Priem19 6y agoThank you for my loudest laugh of today.
- astrange 6y agoInterestingly it seems like the best strategy is direct indexing - buy every stock directly (skip S&P ETFs), then spend your research time deciding what to exclude instead. Nobody is offering this yet at scale because of transaction costs.
- anonu 6y agoWhy is that direct indexing and not just buying stocks? What index are you tracking?
- astrange 6y agoBuying stocks implies you choose what to buy, but here you buy everything (following an index) and sometimes exclude things. It's called "direct" indexing because you don't buy e.g. an S&P ETF. Along with letting you make some decisions, it's more tax optimal.
- stunt 6y agoI'm not sure how effective that strategy is if you exclude the last 2-3 years.
- astrange 6y ago2008-2018 definitely behaved differently from 2018-2020 but there were some issues with passive investing in ETFs. The best strategy was to never sell anything, but if you own an ETF and it changes the index (e.g. a company becomes too large to be small-cap) then it's going to sell it.