Peter Tuchman

So an investor is basically saying, I'm going to buy things, I'm going to hold them for the long run. And a trader is saying, I'm going to buy Coca-Cola today, but next month I'm going to sell it, and then I'm going to buy Pepsi, then I'm going to sell it, then I'm going to buy Nvidia. And so you're constantly moving, buying and selling a variety of stocks.

So an investor is basically saying, I'm going to buy things, I'm going to hold them for the long run. And a trader is saying, I'm going to buy Coca-Cola today, but next month I'm going to sell it, and then I'm going to buy Pepsi, then I'm going to sell it, then I'm going to buy Nvidia. And so you're constantly moving, buying and selling a variety of stocks.

So an investor is basically saying, I'm going to buy things, I'm going to hold them for the long run. And a trader is saying, I'm going to buy Coca-Cola today, but next month I'm going to sell it, and then I'm going to buy Pepsi, then I'm going to sell it, then I'm going to buy Nvidia. And so you're constantly moving, buying and selling a variety of stocks.

The issue with buying and selling stocks is the overwhelming majority of professionals that buy and sell stocks to try to beat the market, lose to the market. So if we're talking about, depending on what time period we want to look at, 70% to 95% of professionals losing the market over a 10-year period, the odds that the regular retail investor is going to beat it are probably significantly worse.

The issue with buying and selling stocks is the overwhelming majority of professionals that buy and sell stocks to try to beat the market, lose to the market. So if we're talking about, depending on what time period we want to look at, 70% to 95% of professionals losing the market over a 10-year period, the odds that the regular retail investor is going to beat it are probably significantly worse.

The issue with buying and selling stocks is the overwhelming majority of professionals that buy and sell stocks to try to beat the market, lose to the market. So if we're talking about, depending on what time period we want to look at, 70% to 95% of professionals losing the market over a 10-year period, the odds that the regular retail investor is going to beat it are probably significantly worse.

On top of that, you pay a lot more taxes when you're actively trading. You oftentimes find yourself with pockets of cash that aren't invested while you're trading. You start to add those things and you lag the market significantly.

On top of that, you pay a lot more taxes when you're actively trading. You oftentimes find yourself with pockets of cash that aren't invested while you're trading. You start to add those things and you lag the market significantly.

On top of that, you pay a lot more taxes when you're actively trading. You oftentimes find yourself with pockets of cash that aren't invested while you're trading. You start to add those things and you lag the market significantly.

even more so this is a kind of an exercise in futility if you're trying to own a bunch of stocks for the long run you want to find a basket of stocks and you want to own them for the long run there's a lot of ways to do that but this idea that you're going to pick and choose and pick and choose and buy and sell you're going to create a lot of taxes you're going to have what we call in the industry cash drag and even despite those things you'll probably underperform the market over time so you spend a lot of time to diminish the probability of doing well

even more so this is a kind of an exercise in futility if you're trying to own a bunch of stocks for the long run you want to find a basket of stocks and you want to own them for the long run there's a lot of ways to do that but this idea that you're going to pick and choose and pick and choose and buy and sell you're going to create a lot of taxes you're going to have what we call in the industry cash drag and even despite those things you'll probably underperform the market over time so you spend a lot of time to diminish the probability of doing well

even more so this is a kind of an exercise in futility if you're trying to own a bunch of stocks for the long run you want to find a basket of stocks and you want to own them for the long run there's a lot of ways to do that but this idea that you're going to pick and choose and pick and choose and buy and sell you're going to create a lot of taxes you're going to have what we call in the industry cash drag and even despite those things you'll probably underperform the market over time so you spend a lot of time to diminish the probability of doing well

That's right. If your own situation, things come up, obviously, we have to place trades to meet your needs if that's the situation. But otherwise, rebalancing or moving from bonds to stocks in a down market, those kinds of moves, those are disciplined. And we're not market timing. We're not buying and selling individual stocks day to day. We're saying, oh, COVID happened. The market went down 35%.

That's right. If your own situation, things come up, obviously, we have to place trades to meet your needs if that's the situation. But otherwise, rebalancing or moving from bonds to stocks in a down market, those kinds of moves, those are disciplined. And we're not market timing. We're not buying and selling individual stocks day to day. We're saying, oh, COVID happened. The market went down 35%.

That's right. If your own situation, things come up, obviously, we have to place trades to meet your needs if that's the situation. But otherwise, rebalancing or moving from bonds to stocks in a down market, those kinds of moves, those are disciplined. And we're not market timing. We're not buying and selling individual stocks day to day. We're saying, oh, COVID happened. The market went down 35%.

and I'm with 70% stock and 30 bond, and then my stocks are down, I'm going to rebalance today to get back to 70-30. That kind of trading makes a lot of sense.

and I'm with 70% stock and 30 bond, and then my stocks are down, I'm going to rebalance today to get back to 70-30. That kind of trading makes a lot of sense.

and I'm with 70% stock and 30 bond, and then my stocks are down, I'm going to rebalance today to get back to 70-30. That kind of trading makes a lot of sense.

I think a lot of people look at volatility and they confuse that with risk. As one example, they go, oh, a stock market is risky or investing in the S&P 500 is risky because look after 9-11 or the tech bubble or 809 or COVID, it went down 34 to 53%. That's really risky. That's really just volatility. That's things going up and down in price. Risk is really the risk of loss.

I think a lot of people look at volatility and they confuse that with risk. As one example, they go, oh, a stock market is risky or investing in the S&P 500 is risky because look after 9-11 or the tech bubble or 809 or COVID, it went down 34 to 53%. That's really risky. That's really just volatility. That's things going up and down in price. Risk is really the risk of loss.