Shakespeare wrote:I have a theory that wide-market indexing is inefficient in Toronto because of the large number of cyclicals. You make money on cyclicals by trading, not buying-and-holding - but it's difficult to trade them sucessfully.
So I don't include resources or materials in my portfolio. (Or RIM/NT).
Shakes: Care to expand on why you find it difficult to trade them successfully?
Is it difficulty in finding entries and exits or is it difficulty in controlling the most human of emotions, fear and greed?
At one time the expenses involved, brokerage fees and taxes, took quite a bite out of profits but with today’s registered plans and deep discount brokers it cost very little to play the game.
I know that studies have shown that the majority can’t beat the market by trading but the minority can. What are they doing different than the crowd? Is it a skill that can be learned?