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

How does this relate to Polish reality?

The average Polish investor on the stock market has a portfolio of approximately PLN 30. If he had invested in Bank of America, just like Buffett, he would now have around PLN 000 instead of PLN 30 over a 000-year period. Thinking about long-term goals and repeating this pattern for 102 years, over PLN 000 million would be raised for retirement. Quite a lot, right?

We owe the result to compound interest, but here, too, there is a certain "but". Well, the assumption that for the next 40 years, investing all your capital in one company, we always choose a good investment, it is wrong. Even Warren Buffett is sometimes wrong. That's why you have to diversify your wallet, and this always works "Flattening" the rate of return.

The second problem is the market characteristics of the Polish investor. The Warsaw Stock Exchange is unfortunately a young market, its best years are probably just in front of you. Stock quotations are more laced, and politics have a big impact on indices and the economy. Often, stock prices of companies are detached from their foundations.

Not only foundations count!

Technical analysis may come to help. Without delving into detail into this moment, the analysis of the charts allows for the interpretation of investors' expectations regarding future prices. One of the technical analysis's tenets says that "the price discounts everything". This means that confidential information is included in the current share price, which should not, but nevertheless float. The price behavior shows the nervousness or calm of investors. The volume reflects interest in shares. Is it possible to invest on a typically technical WSE?

Definitely yes, Marcin Tuszkiewicz proves it in his monthly live online meetings organized by Squaber. The portfolio maintained since January 2016 is currently in the positive 64,46%. Transactions are concluded in the medium or long term. It depends on how long the chart will "allow" you to hold the purchased shares. Importantly, all transactions included in this wallet follow specific rules that are known to meeting participants.

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.