"Buy and hold" vs. active investment management - Marcin Tuszkiewicz, Investio for CMC Markets

Fig. 1. Graph of the cumulative return rate of the "Peaks / Bottoms" strategy

The great advantage of this approach is risk control. The maximum capital swaps are only 8,8%! The strategy is based on:

• Selection of companies in terms of volatility and volume - so that it is possible to easily buy and sell a block of shares worth PLN 10 with one order.
• Determining the prevailing trend in accordance with the methodology based on more than 100 summer, proven theory Dova.
• If the trend is downward, it means that the company is still under observation and the situation will be reviewed next week. At the level of the Last Confirmed Summit, an alarm is set so as not to miss the change in the trend.
• In the case of an upward trend, levels are set at which to buy shares - also through alarms.
• When the price reaches the designated levels, you buy. The investment loses its meaning in the event of breaking the Last Confirmed Bottom - at the beginning it will mean a loss, but it will be predetermined and limited. However, in the case of continuation of increases, the Last Confirmed Bottom goes along with the price higher and higher, thanks to which it protects the profits gained.

Fig. 2. An example of a transaction and its management at LPP

Additional pluses that make it easier for everyone to use this strategy are:

• No need to keep track of the listings all the time, because the key moments are related to breaking levels that can be alarmed.
• The clear moment of the transaction.
• A concrete way of controlling investments, so that the profits will not turn into losses.

CMC Markets training

To make your investments well-thought-out and reasonable, CMC Markets in cooperation with Investio organized a series of free workshops in the largest cities in Poland. During them, Marcin Tuszkiewicz will present the assumptions of three strategies that he uses in the markets:

• for a stock market investor whose results are shown above,
• for the daytrader, which allows for the rational use of financial leverage and the benefits of the currency market or stock market indices,
• and the "swing" strategy ideally suited for commodity markets, raw materials and CFD for stocks.