Do you want to make money in the stock market? Think long term. That’s your best strategy. But this isn’t just a buy and hold strategy. It’s a philosophical approach. It’s not enough to put money in the market every month. You need to buy good companies on the cheap, then watch them grow. It will keep you from buying at market tops and selling at bottoms when everyone else is in panic mode.
Trading is a fool’s game. Sure, you can get lucky, but luck runs out and most of us don’t have the skills to beat the market consistently. Keep in mind that asset allocation won’t be enough. During the 2008 meltdown every asset allocation got hit. Nothing was spared. That’s why it’s important to invest in different sectors and regions. And learn to short stocks. At the very least understand market volatility and what it can do to your portfolio.