11-02-2021, 06:24 PM
(11-02-2021, 05:10 PM)Navi Wrote:SPY isn't the end all metric, but it is a close approximation of the total US stock market the past 100 years. I use it as a guide with risk adjustment applied. IMO if you are 25 you should expose yourself to more risk. At 50 maybe match the risk. Nearing retirement back off. I matched the SPY performance most of my investing career, which is not shocking as half my portfolio was a SPY index fund. I have beaten the SPY the past 12 months which is a small miracle as my port is typically 30% in cash. That won't happen often but it's a big win because my risk was less. I highly encourage young investors to trade with a small part of their port. The education value is enormous.(11-02-2021, 12:30 PM)fenders53 Wrote: Trading will put you in a battle with SPY returns. Pro's fall short but it's fun to try and with experience you have a chance.
Well I actually have shares in SPLG, which is a lower cost alternate to SPY. My goal isn't to beat the market per se. With trading, my goal is strictly to generate investment income to put in to my dividend investments. In other words, short term trading would feed long term investing.
Long way around saying I don't care if I beat the index anymore, but I should pay attention to it. If the SPY is rising 15% and my way yields 5%, it's probably time to stop humoring myself and just put most of my money there. I find swing trading much easier now, but I paid my dues learning.