Investment Language 101 Series: TERM OF THE DAY: -- 'What is 'Passive Investing' | E.16 | Trading Candle Cheat Sheet Incl. Each Episode.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
What is 'Passive Investing'?
--
Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum.
The idea is to avoid the fees and the drag on performance that potentially occur from frequent trading. Passive investing is not aimed at making quick gains or at getting rich with one great bet, but rather on building slow, steady wealth over time.
In Crypto the term is Holding or colloq. "HODL'g".
--
Breaking Down...
What is 'Passive Investing' :
--
Also known as a buy-and-hold strategy, passive investing involves buying a security with the intention of owning it for many years. Unlike active traders, passive investors are not attempting to profit from short-term price fluctuations, or otherwise "time the market." The basic assumption that underpins a passive investment strategy is that the market generally posts positive returns given enough time.
Passive Investing Strategy
--
Traditionally, passive investors attempt to replicate market performance by constructing well-diversified portfolios of individual stocks, a process that can require extensive research.
With the introduction of index funds in the 1970s, achieving returns in line with the market became much easier. In the 1990s, exchange-traded funds, or ETFs, that track major indices, such as the SPDR S&P 500 ETF (SPY), simplified the process even further by allowing investors to trade index funds as though they were stocks.
Now that mutual funds and ETFs allow for index investing with relatively little initial research, the most difficult skill for passive investors to master is emotional control. Resisting the urge to sell when the market experiences a downturn requires patience and a strong stomach. When a rapid sell-off triggered circuit breakers that shut down trading in August of 2015, for example, iShares Core S&P 500 ETF (IVV) and many other ETFs tracking the S&P 500 suffered significant losses, as investors panicked at the lack of pricing information and liquidated their holdings.
Passive investors must have the presence of mind to weather these storms and trust that the market will correct itself with time.
Testing Passive Investing
--
A highly vocal defendant of passive investing is value investor Warren Buffett. His approach as Chairman and CEO of Berkshire Hathaway Inc. (BRK-A, BRK-B) exemplifies some of the principles of passive management, including ultra-long investment horizons and infrequent selling. In a sense, however, he is an active investor, since he invests in companies based on particular competitive advantages.
While his style of investing cannot be considered fully passive, Buffett is a big proponent of index investing. In 2008, to prove the superiority of passive management, Buffett challenged the hedge fund industry – the quintessential active investors – to a 10-year contest. He put a million dollars in Vanguard's S&P 500 Admiral Fund (the first index fund available to retail investors), while Protégé Partners LLC, the hedge fund that took him up on his challenge, picked five fund of funds.
Though the bet is still running as of 2016, Buffett's passive strategy has proven its worth thus far. By the end of 2015, Buffett's passive bet had generated a 66% cumulative return compared to Protégé's 22%.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
What is 'Passive Investing'?
--
Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum.
The idea is to avoid the fees and the drag on performance that potentially occur from frequent trading. Passive investing is not aimed at making quick gains or at getting rich with one great bet, but rather on building slow, steady wealth over time.
In Crypto the term is Holding or colloq. "HODL'g".
--
Breaking Down...
What is 'Passive Investing' :
--
Also known as a buy-and-hold strategy, passive investing involves buying a security with the intention of owning it for many years. Unlike active traders, passive investors are not attempting to profit from short-term price fluctuations, or otherwise "time the market." The basic assumption that underpins a passive investment strategy is that the market generally posts positive returns given enough time.
Passive Investing Strategy
--
Traditionally, passive investors attempt to replicate market performance by constructing well-diversified portfolios of individual stocks, a process that can require extensive research.
With the introduction of index funds in the 1970s, achieving returns in line with the market became much easier. In the 1990s, exchange-traded funds, or ETFs, that track major indices, such as the SPDR S&P 500 ETF (SPY), simplified the process even further by allowing investors to trade index funds as though they were stocks.
Now that mutual funds and ETFs allow for index investing with relatively little initial research, the most difficult skill for passive investors to master is emotional control. Resisting the urge to sell when the market experiences a downturn requires patience and a strong stomach. When a rapid sell-off triggered circuit breakers that shut down trading in August of 2015, for example, iShares Core S&P 500 ETF (IVV) and many other ETFs tracking the S&P 500 suffered significant losses, as investors panicked at the lack of pricing information and liquidated their holdings.
Passive investors must have the presence of mind to weather these storms and trust that the market will correct itself with time.
Testing Passive Investing
--
A highly vocal defendant of passive investing is value investor Warren Buffett. His approach as Chairman and CEO of Berkshire Hathaway Inc. (BRK-A, BRK-B) exemplifies some of the principles of passive management, including ultra-long investment horizons and infrequent selling. In a sense, however, he is an active investor, since he invests in companies based on particular competitive advantages.
While his style of investing cannot be considered fully passive, Buffett is a big proponent of index investing. In 2008, to prove the superiority of passive management, Buffett challenged the hedge fund industry – the quintessential active investors – to a 10-year contest. He put a million dollars in Vanguard's S&P 500 Admiral Fund (the first index fund available to retail investors), while Protégé Partners LLC, the hedge fund that took him up on his challenge, picked five fund of funds.
Though the bet is still running as of 2016, Buffett's passive strategy has proven its worth thus far. By the end of 2015, Buffett's passive bet had generated a 66% cumulative return compared to Protégé's 22%.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
Hey my friend..check out the official launch of the Canadian Seed Swap.
https://steemit.com/homesteadersonline/@gardengirlcanada/canadian-homesteadersonline-weekly-seed-and-more-giveaway
Will try and get there tonight, scrambling to do things and get out the door, thanks.
thanks a lot for sharing your concept..well done✌✌✌
Good 👍
Yes, the technicalities involved in trading candle sticks is worth exposing especially to new comers. Your concept is a welcome development. Thanks!
Thanks man.