Friday, May 2, 2014

My strong long term mutual fund 'timing' strategy.


Hey guys I thought I would share this because I know there's a bunch of long term investors here. I have a decent amount of experience with the stock market, but the truth of what I say will be self evident.


I mentally divide my money into 2 equal chunks. Chunk One is set to buy my favorite mutual fund(s) on a fairly big correction. Chunk Two is set to buy deep in a massive sell off. You can do more chunks and modify as you see fit.


These are long term holds and unless disaster truly is pending (in which case you should have puts!) then the market will always recover and you'll get a nice return.


Selling is a bit more tricky, basically sell really high. If I was still holding I would gladly sell now but I sold a long time ago (too long). We all need to contemplate exit strategy, but at least this buying strategy is very solid and low risk.







Submitted May 02, 2014 at 11:24AM by Deathduck http://ift.tt/1oaAp2b

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