Andrew Thrasher...

Discussion in 'Share Investing Strategies, Theories & Education' started by Tropo, 9th Dec, 2016.

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  1. Tropo

    Tropo Well-Known Member

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  2. Tropo

    Tropo Well-Known Member

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    "It’s the overwhelming importance for the average and professional investor alike to have a system, to have a strategy, to have some kind of method they can rely on when times get tough and chaos flows down Wall Street that can be followed and trusted, leaving emotion at the door".
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    easier said than done .

    leave a bit of flexibility in your approach (i suggest )
     
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think it's more about having a plan for when things go badly wrong - whether it's "hold on for the ride" or "sell out early" or "sell out when things reach a certain threshold". Doesn't really matter which, so long as you actually have a plan and build your portfolio around that plan.

    I saw so many people get into trouble with the GFC when they initially tried the "hold on for the ride" approach (many advised to do so by their advisers), but then after 6+ months of continual falls, finally losing their nerve and pulling out at the lowest point in the market - thus missing out on the subsequent recovery. It was the worst possible thing they could have done.

    Have a plan and stick to it.

    The problem is that most people don't actually have a plan and don't adequately consider the potential downside - or fob it off as "never going to happen".
     
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  5. twisted strategies

    twisted strategies Well-Known Member

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    i don't have a problem believing a major downturn will happen , my current problem is when ( say )May this year, even trade mostly sideways until next year.

    the timing of the downturn maybe more important ( to me ) than the intensity of the sell-off

    the previous plan will now need some re-assessment regardless of if a correction ( or crash ) happens this year.

    for me first February (so i have a better mid-term view of the future ) then reassess needs and goals .

    maybe i should start at my selection of 'core-holdings' some of them have found intriguing ways to under-perform. ( i have some worthy of promotion )
     
  6. Nodrog

    Nodrog Well-Known Member

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    Not only a plan but strong conviction in it. This is where advisor or personal education is paramount. In times of fear such as during market crashes it's highly likely that one's psychology will determine a good or bad outcome. Hence a plan is only as good as one's belief in it.

    Which is also why I'm a huge believer in investing in Shares for income (dividends). Market volatility is less painful if the majority of dividend income continues to hit the bank account. Combined with a cash buffer this reduces the risk of one having to sell at the worst possible time. This doesn't guarantee success but it certainly increases its probability.

    I encourage anyone willing to listen to read, read and reread the following article or anything by this man:

    In share investing, perception is reality - Cuffelinks

    It's certainly worked for me in more than one sharemarket meltdown. Don't sell, collect the income and get in there buying with ears pinned back. Rare opportunities to buy heavily discounted future income streams need to be welcomed with open arms!