Portfolio management strategies for technical analysts (ePub)

"We believe that calling actively trading institutions investors is like calling someone who only enjoys one-night stands a romantic."

The crazy trading associated with mutual funds is almost never-ending. They buy stocks when interest rates decrease by 0.25% and a month later sell them when interest rates increase by 0.25%. They employ a tactic called inertial investing, in which they must buy a stock when it rises rapidly in price and sell it when it falls rapidly. If there is just a slight decrease in revenue, they sell the stock, and if there is just a slight increase in revenue, they buy it. If there is just a little sign of war, they sell, and if there is just a little sign of peace, they buy. All of these actions were taken in a bid to be named the most successful foundation of the year, an honor that would bring them millions more dollars from a short-term-minded and converted public. from one fund to another based on a quarter's performance. This method cannot be called investment, it is just prediction under the guise of investment. Investing is buying part of a company and watching it grow; Predicting or speculating is throwing the dice in the short-term direction based on stock prices. Investing makes you extremely rich, speculation makes fund managers throwing hot dogs extremely rich.