HOLD TIME: MY TRADES
I looked at a frequency distribution of my own trades, for both winners and losers. Using the average percentage gain or loss over the annual hold time says that I made the most profit by holding at least two years, but less than four. During that time, I averaged 28 percent annually for hold times between two and three years and 36 percent annually for holding between three and four years. This tabulation does not include day trades, which would skew the results.
Conduct the same type of analysis for your trades and your markets.
- My best hold time is between three and four years long.
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