Today's market acts like a direction for most sectors. Although the indexes do not have huge spike, most stocks are green, also for DOW components. You may feel the sentiment of the market is really approving, given the unsatisfactory data though.
I feel the right strategy for the current market would be:
1. 80% of your account should be buy-and-hold.
2. 20% of your account could be played for speculation and options.
I know now you may have a feeling that your stocks are not rising fast enough as other stocks so you want to switch, or play with leveraged tools. Maybe some people gain a lot if they put most of their positions into options or play with margins. This is absolutely the truth and exactly drives many fresh investors into the market, giving their dreams to be a millionaire in weeks or months. However, most people will end up with ZERO in any future decent correction or surprising events. It has been proved in the past few months and will be proved in the future.
I have seen many people wiped out by playing futures and options on single side, either in China or US. It does not matter how many times you win, but if once you lost on time, you will be simply wiped out. So please, if you are not experts, do not play options and futures on single side without hedging. Also, you will find your profit is better if you trade less.
That's all I want to say if we see a mid-term uptrend swing ahead. For most people, I believe choosing the right stocks then hold for a planned period is a good strategy.
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