"People who trade a lot, on average, gross the same amount as everybody else. And net, of course, they do a lot worse, because excessive trading leads to excessive fees and costs." Dr. Harry Markowitz, Nobel Prize winner
The above quote is true, and it underscores my philosophy of only buying stocks at major bear market bottoms, and then staying with those stocks for the duration of the bull market. For the average person, trading in and out of the market is a loser. The timing, which is crucial, is usually not successful.
But if only buying at bear market bottoms, doesn't that mean that you may have to wait years until the next bear market bottom appears? Answer -- yes, but in between bear market bottoms most investors lose money. In the end, it is better to exercise patience and wait.
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