ETF: Compound vs. Day/Swing trading (catch the wave)

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nckhrs
Posts: 8
Joined: Wed May 16, 2018 1:59 am

ETF: Compound vs. Day/Swing trading (catch the wave)

Post by nckhrs » Thu May 24, 2018 2:17 pm

Hi,

Sorry if this had been asked here before, but I didn't seem to be able to find it.
Also sorry if my questions are too newbie-ish.

I was wondering, which one gives a better return with ETF, leave it compounding vs. day/swing trading (catch the wave style)?
Is there any online calculator to calculate compounding ETF? I wasn't able to find it.

This is the "catch the wave style" reference I was talking about:
https://www.investopedia.com/articles/f ... -trend.asp

Also, is there any other rule for day trading other than this?
http://www.finra.org/investors/day-trad ... know-rules

Thanks! :D

livesoft
Posts: 62776
Joined: Thu Mar 01, 2007 8:00 pm

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by livesoft » Thu May 24, 2018 2:24 pm

How can anyone really answer your questions since the answers will depend on how YOU do Day/Swing trading?

You will have to try for yourself and see what happens.

One rule that I made up: Don't pay taxes and don't pay fees to trade --- otherwise you will dig yourself a big[ger] hole that you won't be able to get out of.
Wiki This signature message sponsored by sscritic: Learn to fish.

Always passive
Posts: 312
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Location: Israel

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by Always passive » Thu May 24, 2018 2:28 pm

You are in the wrong forum. We only invest passively. Please review the extensive Bogleheads library to better understand what this forum is all about.

alex_686
Posts: 3925
Joined: Mon Feb 09, 2015 2:39 pm

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by alex_686 » Thu May 24, 2018 2:34 pm

Nckhrs, you have come to the wrong site.

Bogleheads is based on passive index investing. Write up a IPS, update it once a year, re-balance your portfolio rarely. There is extensive theoretical academic and empirical studies that back this method up. In particular for the individual investor.

What you are suggesting is active trading, and even more specifically day-trading. You will be going up against professional investors. They have invested in computer systems, PhD's, fast fiber lines, etc. There is extensive theoretical academic and empirical studies and it is not good for the individual investor. For various reasons, mostly psychological, they underpreform.

There are people who do this for a living using some combination of skill and luck. However your odds would be better if you tried you hand a being a professional poker player.

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permport
Posts: 101
Joined: Sat Mar 31, 2018 11:20 am

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by permport » Thu May 24, 2018 3:06 pm

To the OP, I have some input that you may find to be valuable, if I may.

There isn't much evidence to suggest that active trading will consistently produce profit. There is even less evidence suggesting that it would outperform a passive strategy over time.

However, one thing that many traders don't take into account is the opportunity cost. If you are actively trading, that will take time out of your week. There is an opportunity cost to that time that you have to overcome just to break even.

With passive investing you get the best of both worlds: (1) maximum profit, and (2) you have no lost opportunity cost because you're not spending time every day analyzing markets and assets.

I encourage just about everyone to stick with the passive route, enjoy whatever returns the market provides, and use the time they save to do other things. :sharebeer
Buy right and hold tight.

PFInterest
Posts: 2541
Joined: Sun Jan 08, 2017 12:25 pm

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by PFInterest » Thu May 24, 2018 3:08 pm

nckhrs wrote:
Thu May 24, 2018 2:17 pm
Hi,

Sorry if this had been asked here before, but I didn't seem to be able to find it.
Also sorry if my questions are too newbie-ish.

I was wondering, which one gives a better return with ETF, leave it compounding vs. day/swing trading (catch the wave style)?
Is there any online calculator to calculate compounding ETF? I wasn't able to find it.

This is the "catch the wave style" reference I was talking about:
https://www.investopedia.com/articles/f ... -trend.asp

Also, is there any other rule for day trading other than this?
http://www.finra.org/investors/day-trad ... know-rules

Thanks! :D
day trading works best if you time it perfectly.

nckhrs
Posts: 8
Joined: Wed May 16, 2018 1:59 am

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by nckhrs » Thu May 24, 2018 3:32 pm

Opppsss.... so sorry I didn't realize the forum is for passive investing. :oops:

Thanks for the advices, permport, alex, livesoft, and PFInterest. :D

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permport
Posts: 101
Joined: Sat Mar 31, 2018 11:20 am

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by permport » Thu May 24, 2018 4:41 pm

nckhrs wrote:
Thu May 24, 2018 3:32 pm
Opppsss.... so sorry I didn't realize the forum is for passive investing. :oops:

Thanks for the advices, permport, alex, livesoft, and PFInterest. :D
Of course! Nobody here means to be denigrating if you want to actively trade, either. You just won't find a ton of support on that one. 8-)
Buy right and hold tight.

alex_686
Posts: 3925
Joined: Mon Feb 09, 2015 2:39 pm

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by alex_686 » Thu May 24, 2018 5:04 pm

Please come back if you have questions.

We do macro stuff very good. What will the stock market return over the next 10 years. Low return see - CAPE10. We don't do the micro stuff - what will the stock market do tomorrow.

nckhrs
Posts: 8
Joined: Wed May 16, 2018 1:59 am

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by nckhrs » Thu May 24, 2018 11:11 pm

permport wrote:
Thu May 24, 2018 4:41 pm
nckhrs wrote:
Thu May 24, 2018 3:32 pm
Opppsss.... so sorry I didn't realize the forum is for passive investing. :oops:

Thanks for the advices, permport, alex, livesoft, and PFInterest. :D
Of course! Nobody here means to be denigrating if you want to actively trade, either. You just won't find a ton of support on that one. 8-)
Yep, points taken :D :sharebeer

nckhrs
Posts: 8
Joined: Wed May 16, 2018 1:59 am

Re: ETF: Compound vs. Day/Swing trading (catch the wave)

Post by nckhrs » Thu May 24, 2018 11:14 pm

alex_686 wrote:
Thu May 24, 2018 5:04 pm
Please come back if you have questions.

We do macro stuff very good. What will the stock market return over the next 10 years. Low return see - CAPE10. We don't do the micro stuff - what will the stock market do tomorrow.
Cool, thanks! :D :thumbsup

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