Buy and Hold Is Too Risky for Investors
In today’s fast-paced, global financial market place, investors are searching ways to participate in the stock market advances without getting mauled in periodic bear markets that destroy capital. This book (published in 2010) and website provide a non-emotional, time-tested approach to investing that provides a common sense method to accomplish that goal using a combination of three components: BDH Dashboard indicators, a list of selected ETFs, and relative strength analysis.
All the details that you need to become a self-confident and self-directed investor are provided in this complete investing plan. All the information you need to obtain to track the market and the ETFs that you invest in is provided free on the weekly blog to this site including all the required Internet links. In about five minutes every weekend, you can monitor the markets and your ETF investments to determine if any changes are necessary.
Please note that the original strategy in the book was simplified and does not mirror the book’s ETF universe or all of its indicators. You can read more about this in the FAQs.
BDH Historical Performance
Here is the BDH Dashboard price performance data since inception compared to the SPY (not total return data in either case):
2018 -1.09% – 6.20%
2017 10.46 15.02%
2016 3.20 9.50
2015 -2.13 -0.70
2014 13.63 11.40
2013 6.10 29.60
2012 14.40 13.40
2011 -6.16 -4.08 3/11/11 to 12/30/11
2010 9.07 6.24
Go to the following site to see all the transactions:
The BDH Strategy excels when a bear market occurs which was not the case during this period. Also, by using an abundance of stop limits the strategy incurred too many sell signals. Once an ETF is sold the market typically needs to reverse 5-7% before the next buy signal is given which negatively impacts overall performance as that 5-7% is not captured.
DashboardV2 Chart with Up-to-Date Buy and Sell Signals
The link below provides all the recent V2 Signals:
All the signals since inception are shown on the chart below (click on it):
Why This Website Was Developed
This site was developed specifically for investors who have read this book and want to use its strategy to build wealth during market up trends and protect their principal during down markets. If you happened to arrive at this website from another source, that is terrific. Now you have an opportunity to learn about a better way of investing than continuing with the unsuccessful buy-and-hold approach. Make sure to review the FAQs before going to the weekly blog postings to make sure that you understand how the strategy works, as well as how to easily obtain the market indicators on the blog, and to review the back-tested results.
If you haven’t purchased the book yet and would like to benefit from this website, I suggest that you just click on the top tab on the right (Buy It) and get going. This book is available not only in hardcopy, but also in the Nook and Kindle editions, so you have no excuse not to buy it. The Kindle edition can also be purchased for a laptop or desktop PC, not just the handheld device, by first downloading the free PC software from Amazon. When you download the book, it will be available in seconds for the nominal price of $9.99.
This book provides a practical, easy-to-implement rule-based investing approach that investors can master quite easily. Of course, to use the strategy you need to obtain the updated data on the Internet and I provide you with these free sites to you in the book.
This book will assist you in using the strategy presented in this book to become smart profitable investors going forward. Of course, your risk tolerance, covered in an early chapter, will determine how you allocate your assets between equities and fixed income vehicles. Profitable investing is accomplished by first determining the market’s health using a group of market indicators, and then investing in a limited universe of exchange-traded funds, selected by a weekly relative strength analysis. Once the market trend has changed all equity positions should be sold and the proceeds are placed safely in cash awaiting the next buy signal.
After reading the FAQs, go to the blog page for the latest market commentary, Dashboard readings, and backtest results (June 7 blog and also in the FAQ tab).
The blog is updated weekly usually on Sunday to keep you informed as to the Dashboard and market conditions. And of course reader comments and questions are always welcomed.
The information offered on this site is for educational purposes only. Investing and trading involves risk, and the user is solely responsible for any investing or trading decisions that he or she undertakes. Historical stock market performance is no indication of future results. Although the author has taken every precaution to present accurate data, he assumes no liability for errors or omissions. It is offered without warranty of any kind. All concepts and ideas presented should be taken as points of departure for the individual’s own research. You are responsible for your own investment/trading decisions. Recommendations are made without any consideration of your personal financial sophistication, financial situation, investing time horizon, or risk tolerance. Investments recommended may not be appropriate for all investors. Use of this material constitutes your acceptance of these terms.