Stocks and cryptos have produced the best returns
<p>Having spent many years in the markets I have come to the conclusion that long term trading (or investing) has produced better returns than short term or intraday trading. I have already explained in previous articles why it is difficult to succeed with a short term or intraday strategy. These strategies involve leverage and the use of a stop loss, both are negative for profitability. Long term investing on the other hand does not use leverage or stop losses. What many people don't know is that you can achieve very good returns without leverage. For example my long term portfolio (without leverage) is already <strong>up 127%</strong> this year.</p>
<p>In my experience my best returns have come from long term investments in stocks and shares. Two years ago I started investing in cryptos, taking a long term view and again these have produced good returns. I am sure that carefully selected stocks will continue to be top performers, however I am not so sure about cryptos. It is difficult to analyse cryptos, they don't have a fundamental value, however, there is a mania on cryptos, as long as the mania lasts cryptos will do well.</p>
<p>The bottom line is that betting on the long term is more reliable than betting on the short term. Therefore I decided to stop all short term trading. If you go to my website you will see I no longer offer intraday or short term trading services. The only strategy I offer is long term (position trading). I still offer the daily FTSE 100 and S&P 500 short term forecast because some members are still interested in the short term outlook.</p>
<p>In the position trading strategy I post my analysis and my trades on stocks and futures. I analyse global trends based on fundamental factors, then I select the market based on Elliott wave analysis. I am bullish on agricultural products like <strong>corn</strong> and <strong>soya beans</strong> and base metals like <strong>Copper</strong>. Supply chain issues will continue to push inflation up and when there is inflation investor buy hard assets. I am bullish on <strong>precious metals</strong> because the rise in the 10Y yield is temporary. <strong>Gold</strong> and <strong>Silver</strong> could go down in the short term but when the trend in yields turns down gold and silver will rally. This decline in yields will be accompanied by a <strong>US Dollar</strong> decline, I believe the current rally is counter trend.</p>
<p>I believe the <strong>stock market</strong> will suffer from higher interest rates but the Fed has the option to do a u-turn and not raise rates. This action would stop any decline in the stock market. However the Fed cannot stop inflation without raising rates, so the stock market is likely to go sideways until interest rates go up or inflation accelerates.</p>
<p>Even if the stock market declines there will be opportunities to buy individual <strong>stocks</strong> that will perform well in any condition. There are stocks well positioned for the next mania, these stocks have the potential to double or triple in value in the next twelve months. I buy and hold them without leverage (in a share dealing account).</p>
<p>Investing in crypto is like gambling but there is a mania on cryptos, for that reason I like to take a punt on cryptos. I favour smaller tokens like <strong>MANA</strong> and <strong>Cardano</strong> (ADA) which I own. But I don't publish my trades on cryptos, these trades are too risky and I would not like my members to take that risk. These cryptos could drop massively if sentiment changes.</p>
<p>Note: as my trades are long term with no stop loss, you need to be patient if a market or stock goes into a loss. The majority of those losses will turn into a profit if you hold tight.</p>
<p>Are you ready to follow my trades?</p>
<p><a href="https://www.e-yield.com/payment-position-trading/">Subscribe to Position Trading and get a discount for the first month</a></p>
Leave a Comment