StockFollowing® Blog

Individual Investors Should Not Abandon Their Competitive Advantage in Favor of Diversification

The possibilities offered by contemporary financial markets, that is — the opportunity for a broad portfolio diversification by investing in different financial instruments with ease — is not the blessing that those who profit from the variety of financial services and instruments would have you believe. In many cases, this kind of “diversification” is not only useless, but risky for individual investors.

Individual investors' diversification - Investment advice

The TradersEXPO New York, 2017

Thoughts about diversification, which is widely accepted both in an academic environment and among investment advisors as an unmitigated good and a “free lunch,” kept running through my mind while at the TradeEXPO New York. Seeing different financial instruments, as well as trading and investment techniques, and even talking to company representatives, I kept thinking about diversification – a topic that was the subject of frequent discussions I had with professors while I was a financial economics student. I will not focus here on the question of why diversification (quite a disputable concept, in my opinion) is so widely accepted in the investment community. This is a topic for a separate article. Instead I want to say a few words about what private investors lose when they adopt the idea of diversification as an indisputable truth.

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By February 28, 2017 0 comments StockFollowing® Blog

Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

The luxurious Omni Orlando Resort at ChampionsGate, where The Money Show Orlando 2017 took place, is situated in a picturesque, secluded location 25 miles southwest of Orlando. Attending the event became my second Stock Following, Inc. business trip, and it made me think about the psychology of that category of investors actively seeking a passive investment return.

Active Investors Are Better Off When They Stop Seeking an Abnormal Passive Investment Return

The Money Show Orlando, 2017
Orlando, Florida

The distinguishing feature of the show was the excellent selection of speakers, companies, and private investors who had come to Florida from all over the world to learn about new investment products, get tips and take in investment advice.

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By February 10, 2017 0 comments StockFollowing® Blog

The Stock Market Offers a Chance for a Winning Investment Strategy

The chance to create a winning investment strategy is what distinguishes investing in the stock market from gambling in Las Vegas.

Stock market winning investment strategy – Stock Following

Las Vegas, Nevada

The participation in the 2017 Consumer Electronics Show (CES), the world's largest annual trade show that took place from January 5-8 in Las Vegas, offered an excellent opportunity to observe casino players and prompted me to think about the difference between investing and gambling.

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By January 12, 2017 0 comments StockFollowing® Blog

Long-Term Investing Is Not Profitable Long Term

Every U.S. stock market investor should, if only once, attend the annual Consumer Electronics Show (CES) in Las Vegas. This would make for a better understanding of the danger of falling in love with stocks and help clarify why long-term investing — despite a widely held belief — is not profitable long term.

Long-Term Investing Is Not Profitable Long Term

Consumer Electronics Show, 2017
Las Vegas, Nevada

Traveling to CES 2017 was my first business trip in the capacity of Stock Following, Inc. president. The reason why I decided to start my business visiting Las Vegas is my belief that active investors should not only be concerned with numbers, reports, and news. Numbers are important, of course. However, active investment strategy is more than just a set of buy and sell rules. Investors should find ways to familiarize themselves with companies and industries in which they are planning to invest, and not to rely entirely on press releases and analyst reports. The world is changing, and the pace of change is accelerating. New companies supplant yesterday’s leaders, reducing their earnings and driving stock prices down. It is only a matter of time before investor money flow changes directions, eating up the excessive bull market return and driving long-term portfolios down to the S&P 500 level. The solution to this, of course, is active investing.

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