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My 6-ish years trading has lead me to the view (to a point) that by knowing less I trade better.

To give context to "the less I know" I studied economics (though don't work in that field) and follow financial press from interest. So my low knowledge is probably better than the average public. Based on this low knowlege trading on my broad stroke feelings, as much on gut as anything, and infrequent trading seem to work best. Previously I traded regularily (changing positions several times a week) and followed/analylised daily micro events within or affecting my target companies. I found I did worse and I was trying to understand market sentiment and buy/sell based on short term humps/dips.... which has no logic.

After a couple of years of mixed results, results have been much better by trading when I see those macro events when you feel to your bone the market has got it wrong. And then go in and wait a few months.

As a sample of one I cant say if this is right, and there are several industries that exist implying I'm wrong. But it absolutely works best for me.




It sounds like previously you were losing money because your frequent trading generated a lot of transaction costs. Now you trade less frequently, you have removed a lot of drag on your returns.

Essentially, all I am saying is that if your trading were completely random (and buying based on "broad stroke feeling" and "gut" and "feel to your bone" is essentially random) you would expect to do better the less you trade.

Which is exactly what you are seeing.


It was more exiting at a lower price than I paid that was doing the damage. The problem was, in my view, that I was trying to apply logic to an sentiment market. This won't work on the very short term time scale without some kind of knowledge advantage. Or perhaps I was simply not good at it!


This is my strategy. I don't care too much about P/E ratio, earnings, etc because most investors don't care either. Wait for a big move and react after the chaos. I also decided against diversifying my portfolio. I used to own 10 stocks, but it was too much information to process. I now never own more than 5 stocks at a time.

It's worked so far. I'll probably get screwed next time the market has a huge crash.


This is quite true. There is such thing as too much information.




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