Robinhood stock trading app valued at $1.3B with big raise from DST

Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @10:26AM (#14012249)

As in anything in life you need to have a strategy, even if you invest only in SPY ETF you still have to have a plan when to buy and when to sell. One interesting idea to start is to look into different trend following strategies. Get the data and back test different scenarios and see what is going to work for you according to your risk management, what draw downs you can tolerate, etc...

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Re:Robinhood stock trading app valued at $1.3B with big rais... by matt_wulfeck on Saturday April 01, 2017 @10:48AM (#14012368)

Buy and hold indefinitely is a completely valid strategy, and outperforms almost all active investment strategies in the long term.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by mcguire on Saturday April 01, 2017 @10:53AM (#14012402)

Especially with somewhat-diversified assets like SPYders or index funds.

At least, it's worked reasonably well for me for the last 20 years.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @11:27AM (#14012554)

Buy and hold will work until it doesn't and a lot of people will be left holding the bag, especially if you need the money at the bottom for medical, retirement, etc... Just check the Japan’s Nikkei stock index, almost 30 years later people are still waiting and are far far away from the top...

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Re:Robinhood stock trading app valued at $1.3B with big rais... by hendzen on Saturday April 01, 2017 @11:53AM (#14012684)

So what you're saying is that if the market starts behaving significantly different than it has throughout history, people will be screwed. How exactly does backtesting help you in this scenario? By definition, basing a strategy off a good backtest is assuming that the market will behave similarly in the future as it has in the past.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @01:29PM (#14013120)

People are people, they are greedy, selfish and they scare all the same no mater if it was the tulip or the dot com or the financial bubbles, that's why I am confident in my back tests and that's why I am investing and trading successfully and I am happily waiting for the next bubble to shake things up and present even more opportunities...

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Re:Robinhood stock trading app valued at $1.3B with big rais... by Marazan on Saturday April 01, 2017 @12:02PM (#14012723)

And what does it look like as total returns or Dividends reinvested?

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Re:Robinhood stock trading app valued at $1.3B with big rais... by Marazan on Saturday April 01, 2017 @11:35AM (#14012587)

If you are committing to buy-and-hold you are committing to buying a diversified portfolio.

No one advocating buy-and-hold recommends buying one thing.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @01:24PM (#14013099)

If you back tested and you re confident in your analysis, more power to you! I am yet to find a truly diversified portfolio that can generate good returns for me...

My back tests and analysis are showing that I am not OK with buy and hold, because I don't want to stomach 50% draw downs or to wait 15 years for the NASDAQ to bounce back...

I am not that risk tolerant and I might need to sell some of my investments for medical, travel, even early retirement...

That's why I like to buy when the market goes up and sell when it goes down and be cash during crises like the dot com bubble and 2008 financial crisis... you can always buy them back on the way up when the trend changes...

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Re:Robinhood stock trading app valued at $1.3B with big rais... by Marazan on Saturday April 01, 2017 @01:41PM (#14013168)

Well, yeah. If you are not risk tolerant you shouldn't be investing in the stock market.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @02:10PM (#14013304)

No Sir, you should invest in the stock market according to your own risk tolerance! For me it works perfectly and I am very happy with my own strategy ;-)

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Re:Robinhood stock trading app valued at $1.3B with big rais... by Marazan on Saturday April 01, 2017 @04:22PM (#14013976)

The description of your strategy (which sounds identical to momentum trading) is a quintessential very-high-risk-picking-up-pennies-in-front-of-the-steamroller approach.

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Re:Robinhood stock trading app valued at $1.3B with big rais... by SirLJ on Saturday April 01, 2017 @04:53PM (#14014114)

one thing for sure is that you have no idea what my strategy is and I am not about to tell you either...

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Re:Robinhood stock trading app valued at $1.3B with big rais... by Marazan on Sunday April 02, 2017 @05:35AM (#14016571)

You described it two posts up. Buying on upswings selling on downswings.

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