AR01 Long Term Investing (Web Based) - Suggestions Needed
I'm looking to develop a long term investing plan to provide to friends and family members who have the buy and hold strategy for their stock market investments (not bonds). The bear markets in the past decade got me started on this path. However, what I have come up with so far for me is fairly complicated for the individual who doesn't read technical charts.
So to share with others I have started trying to work on something that has the following requirements:
VERY Simple rules that can be summarized and understood by anyone
Minimize the whipsaws
Not attempting to call tops or bottoms
Something that can be reviewed in 5 minutes a week
Avoids the bear markets so they can sleep at night and gets them some profit in the bull runs.
Maybe this is not the best path. Maybe I should just tell them to buy Vanguard 2020 / 2030 / 2040 funds. But I want to give it a shot anyway and I would love participation from others. Do you already have something you would be willing to share? Let's all collaborate.
I'll post this for now and my next post will be an example.
For a very simple system - take a diversified portfolio of potential stocks, and use something like a 200day MA, determine a simple price action filter to help minimise whipsaws, and only go long or square.
The money management over the portfolio will be important.
This should cover most of your list of requirements.
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