Sure one can but smaller rebalance period and higher churn comes with its own cost. Most of the Momentum indexes from NSE have given a 20%+ return in the last 19 years ( inception year is 2005 )…now if one thinks one can outperform that weekly churn, its possible but not easy. As I said, nothing right or wrong. Keep in mind that the 20% return on the index is with 0 effort and no taxation overheads. Doing it actively ourselves have these costs.
Now even I have chosen to do it myself but I have opted for a low churn strategy so I dont have a trailing loss approach at all. My momentum strategy has had only 1 exit in the last 8 months and despite that am quite satisfied with the returns. Churning 1-2 stocks every other week not exactly my cup of tea even if I am convinced I am leaving some return on the table. Ultimately cost of execution and overheads matter in the long term.
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