January 06, 2006
Trading - another reason not to do it?
The market’s average return over five months is almost exactly equal to the average best day every five months. There are about 100 trading sessions in five months so that means that the market is flat for 99% of the time;100% of your profits come on just one day in 100.
Maybe you can pick the 1-in-100. I can’t, and that’s why I’m always fully invested.
Good advice I think - just stay diversified.