All of them should have stuck with the game-changing consumer technology company, though. The stock soared to a high of nearly $500 per share earlier this year, which at the time was almost a 3,000% run-up from its very first trade as a publicly traded company.
Rewarded patience is only part of this lesson, however.
Ever heard of the Pareto principle, sometimes called the 80/20 rule? It applies to the investing world as well around 80% of your gains will come from roughly 20% of your positions.
The catch: You don t know which 20% of your stocks will do the heavy lifting. You just have to be willing to leave things alone when one or more of your holdings starts going ballistic.
Author Bio
James Brumley is former stockbroker with a large Wall Street firm, and a former trading analyst for a small, options-based newsletter. After twenty years of professional experience in and around the market, his approach is one that combines fundamentals, sentiment, and common sense. It s also an approach that respects this John Keynes reality: The market isn t always rational. Follow @jbrumley
It s a surprising statistic, but in the average year, more than 80% of the United States actively managed mutual funds underperform the broad market. It s a surprise simply because these funds are managed by trained (and well-paid) financial professionals.
3 Secrets to Beating the Average Investor fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
The Market Throws Us a Curve Ball Let s check under the hood for the interesting twist that occurred late last week, the short-term overbought/oversold readings, sentiment and more on the indicators.
Apr 19, 2021 | 06:00 AM EDT
An interesting twist occurred in the market last week. The short-term overbought reading for Nasdaq, which is based on the advance/decline line, went from overbought to (almost) oversold. That is how crummy Nasdaq breadth was last week. Six of the last 10 trading days have seen Nasdaq breadth negative.
The same is true of net volume for Nasdaq: Six of the last 10 trading days have seen more downside than upside volume. Yet in the last 10 trading days, Nasdaq has managed to tack on 4%. Oh, sure, most of it came two weeks ago since last week Nasdaq only managed to eke out 1% (barely) for the week. But that s the weakness under the hood.
S&P 500 Closes At Record High As Investor Optimism Reaches Highest Level Since 2017 forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.