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HopefulInformation OP t1_iy2djzt wrote

Reply to comment by DeluxeXL in Negative compounding returns by HopefulInformation

That makes sense. Thank you!

Link to article here: https://www.investopedia.com/articles/06/compoundingdarkside.asp

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DeluxeXL t1_iy2flfo wrote

Bad advices in the article. Author recommends stock picking and market timing.

> Investors must become good stock pickers rather than just investing in a diversified portfolio of stocks.

> Another strategy is to use bonds to build a ladder that provides a relatively safe return that can be used in a weak stock market environment.

> it is even more important to employ proven capital management techniques. This starts with trailing stops to minimize losses and/or capture some profit from an investment.

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