You would think everyone knows that long term investing outperforms trading yet the average portfolio holding period is 6 months?

Trading has the appeal of making money quickly. The problem is that the accuracy tends to be 40 - 60%. Long term investing has fewer decisions but what can be held for long periods of time?

80% of day traders lose all their funds in two years. The typical investor underperforms the S&P by 5 percentage points per year. There are very few great traders. However, 1% of your portfolio can be traded daily safely because it is a small amount. The goal is to always trade all of that 1% every day. Quickly admit when wrong. It appears that with TQQQ options it is possible to make 1000% per year or more.

For most investors a buy and hold long term investing strategy is the best approach. You can make 8 – 13% per year owning just the S&P. If you use the Stars buy and hold approach, the return can be increased to 21 – 32% per year. This approach is currently the best long term investing approach I can find. These returns are 15 and 25 year averages.

Stars has many other advantages besides performance. The cap weighted ETFs SPY and TQQQ pick the stocks for you. You always own the very best stocks because cap weighted ETFs buy what is rising the most and incrementally selling what is falling. Market direction knowledge is not needed because Stars makes on average over 3 years about the same amount in rising and correcting markets. In corrections Stars buys many more shares at cents on the dollar.

Because Stars does the same rebalancing every year its performance is more repeatable than most strategies. Stars takes one hour per year to maintain.