Discussion in 'Indices Discussion' started by longtermbull, Dec 13, 2016.
Which benchmark do you use to measure your relative performance?
I don't benchmark my portfolio against DJ, S&P or Nasdaq. I will use those numbers as market direction indicators. Don't fight the market. I do track, in a spreadsheet, the S&P 500 Index and calculate and graph Fibonacci S2/R2 numbers as a measure of volitlity. It is an interesting spreadsheet exercise, using the GoogleFinance() function. Keeps my mind cooking.
I read the other day that market volatility is now at its lowest since 1993 - how long will this last with Trump on the prowl?
Bench marking an individual security is simple enough--fund performance can be compared with an index. ... Some in this camp said they believe that bench-marking against a traditional market index encourages short-term thinking and possibly even too much trading.
Personally I use the main indices as a guide when reviewing my performance. However, I tend to go for smaller companies where the risk and potential reward is greater than average.
Maily I use signal from buyselltrend.com, it works good.
In stock market index is indicator or measure of something, mainly it typically refers to a statistical measure of change in a securities market.
You need to find an index which reflects your portfolio - no point comparing smaller company investments against the main index for example. However, it is important that you do benchmark your performance so you can tell how you are doing.
Simple, techy its the NADAQ and general its the DJIA - a mix of the two then aportion appropriately to benchmark your performance.
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