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tk1111

Buy and Hold Successful Tips?

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Hi, If you have a buy and hold strategy that works, could you share it with me? Presently, I am buying and holding large cap stocks and they only make about 5% total, but I want to increase my returns. I really appreciate any tips you have for me. Thanks.

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tk1111:

A successful Buy & Hold strategy requires that you sell when a stock begins to lose its momentum. I use two approaches that work well depending on the overall market momentum.

STRATEGY ONE: When the market is gaining momentum...as it has the past 20 months...I focus on stocks with more than $10Billion in Market Cap (Big Caps & Mega Caps) that exceed my proprietary price strength hurdle. Here are some examples of these from this weeks activity (August 29, 2014):

WLL SLXP WLK HPQ ETE CNI SWKS IVZ

LUV URI DPS AMP LYB AAPL HBI WMB

MCO WYN NSC MSFT MJN ATVI FB TV

CP CM RCL SIAL MGA

When the momentum disappears...I do as well! But, I re-invest in another Big Cap Alpha and it's possible to exceed 30% per year ROI. The size of these candidates reduces my downside risk because they aren't volatile like the thinly traded stocks.

 

STRATEGY TWO: Another Big Cap strategy, but, the focus is on Contrarian stocks. As long as the market is not going into a tailspin I like to locate MEGA-Cap stocks that are in the lower end of their one-year price range. Of course, I look for near-term momentum, which often signals a turnaround. Selling is triggered by a maximum loss of 10% OR the stock reaches a price that is 80% of the one year price window at the time of purchase. For example, DB (Deutsche Bank) is currently at 9% of its one year price range. If I buy at $34.10, I will sell at 30.85 & take a 10% loss OR hold as long as I need to until I reach $47.05, which is 80 % of the price window and will result in a 37% ROI.

Examples of these Big Cap GAP stocks for August 29, 2014 are:

 

SWN GSK DB RRC TS

VRX GM GWW ETN WFM

 

One final note of caution: ALWAYS do your due diligence...look for reasons NOT to buy these contrarians. If you can't talk yourself out of it then jump in and monitor them closely.

 

Here are some Mid Cap GAP stocks that may be worth looking at...their smaller size can mean greater risk, but each investor must determine this risk/reward factor themselves,

WETF SLAB DXPE KBH AXE ALB

FLO MTH FNSR IILG DKS

 

 

stocksniper911

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As a Buy and Hold Investor for 10+ years I have seen a lot of things, made some mistakes and met a lot of people in the real estate business. This collection of experience has lead me to form an opinion on what makes a Buy and Hold Investor Successful.

 

1.)You Make Money When You Buy

The first thing I want to discuss is the standard statement of “You make your Money when you Buy.” When I started investing I thought I knew what this meant but in reality I had no clue. I got lucky because we were buying property in a rising market and thus, “luck” insured we were well taken care when we started investing.

 

I don’t know about you but I don’t believe in “luck” as a business strategy. I will take all the good luck we receive, but I will never count on it. After 10 Years of investing I have a much better understanding of the statement that you make your money when you buy.

 

2.)Fast Occupancy and Low Turnover

 

Second, I want to ensure Fast Occupancy and Low Turnovers. One of the components of buy and hold investing that I enjoy the most is reviewing a distressed asset and envisioning how we can turn it around quickly.

 

As a buy and hold investor one of your most important tasks is to quickly attract tenants and then ensure they stay as long as possible. This means that I generally fix the exterior first and I put in a sizzle feature or two that will force prospective tenants to stop the car and look at my rental property. If they don’t stop the car, they won’t rent your property.

 

3.)Establishing a Defined and Repeatable Process

 

The characteristic that has made us the most successful is our creation of a defined and repeatable process. When you have a defined and repeatable process you can look for opportunities to improve and tweak your model.

 

The process does not need to be complicated, and in fact it should be easy to understand. Our process starts with constantly staying in the market, talking with new agents all the way through closing on a deal, and properly repairing the property.

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In the forex market, a trader can hold a position for as long as a few minutes to a few years. Buy-and-hold strategies in forex trading offer long-term profit potential, as well as additional profit if the trade features a positive overnight interest rate trading.

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On 11/30/2018 at 3:50 PM, divyanshisharma said:

 Buy and hold is a passive investment strategy for which an investor buys stocks and holds them for a long period regardless of fluctuations in the market.

Usually investors hold shares when they buy them from IPOs in my opinion.

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