Last year I wrote a chapter in a book called The Wiley Trading Guide In it I banged on about lies that brokers tell people and some of the profound misunderstandings that those involved in the supply side of trading have.
In particular I took aim at the notion of buy and hold and its oddly skewed notion that if you were not in the market all the time then you would miss the best days. Well as you could gather this notion is bollocks and it is much more important to miss the bad days instead of catching the good days. I stuck in a few nifty graphs to illustrate this.
Someone who has read the book sent me this image this morning – it basically says the same thing. You are better off missing the worst days than getting the best days.