If you think buying and hold strategy works , you might want to reconsider again.
Here, I show you the oil chart. The first 180% profits was generated from holding on from Jun 2017 to Oct 2018. If you failed to exit, your profits are all gone by the time it reached Dec 2018, barely two months after it peaked.
Then, from Dec 18 to Apr 19, had you long this oil contract, you would made another 57% profits. Again, if you swear by the buy and hold strategy, you will be sorely disappointed ! It is back to zero or negative as at yesterday pricing.
I think from the chart, I have illustrated quite clearly by holding on forever , you are doing yourself a dis-service. Not only have you not made money from the market, you have also wasted time. That means , from 2017 to now, 2020, 3 years later, all money invested in Oil is now in the red, albeit a small loss from where you bought into.
Using simple trend line, it helps you to see where is the peak and when it is turning down so you can exit. Even if you did sell off at the peak , say , 5-10 % below the peak, you are still enjoying a good returns rather than donating back to Mr Market who is already a multi-trillionaire.
OPEC apparently can't seem to agree on the production cut and if it continues, we can see the Oil price revisit the 35 dollars mark. Extremely scary........
P/s: well, if you employ the buy and hold strategy say on the S&P 500 indices , then it may not apply as it is still trending up. Oil is a commodity and it is volatile. It is important to put things in context and not assume just because buy and hold strategy works in some stocks and/or index, it will also work for others. Charts don't lie, they present facts to you. It is us, humans who has to accept and use it to our advantage.
Here, I show you the oil chart. The first 180% profits was generated from holding on from Jun 2017 to Oct 2018. If you failed to exit, your profits are all gone by the time it reached Dec 2018, barely two months after it peaked.
Then, from Dec 18 to Apr 19, had you long this oil contract, you would made another 57% profits. Again, if you swear by the buy and hold strategy, you will be sorely disappointed ! It is back to zero or negative as at yesterday pricing.
I think from the chart, I have illustrated quite clearly by holding on forever , you are doing yourself a dis-service. Not only have you not made money from the market, you have also wasted time. That means , from 2017 to now, 2020, 3 years later, all money invested in Oil is now in the red, albeit a small loss from where you bought into.
Using simple trend line, it helps you to see where is the peak and when it is turning down so you can exit. Even if you did sell off at the peak , say , 5-10 % below the peak, you are still enjoying a good returns rather than donating back to Mr Market who is already a multi-trillionaire.
OPEC apparently can't seem to agree on the production cut and if it continues, we can see the Oil price revisit the 35 dollars mark. Extremely scary........
P/s: well, if you employ the buy and hold strategy say on the S&P 500 indices , then it may not apply as it is still trending up. Oil is a commodity and it is volatile. It is important to put things in context and not assume just because buy and hold strategy works in some stocks and/or index, it will also work for others. Charts don't lie, they present facts to you. It is us, humans who has to accept and use it to our advantage.
www.cnbc.com/2020/03...c-deal-collapse.html