The effect of missing the best days in stocks

University of Michigan Professor H. Nejat Seyhun analyzed 7,802 trading days for the 31 years from 1963 to 1993 and concluded that just 90 days generated 95% of all the years’ market gains — an average of just three days per year.

ifa.com; H. Nejat Seyhun, University of Michigan, “Stock Market Extremes and Portfolio Performance,” commissioned by Towneley Capital Management, 1994

Highlights the importance of staying invested, trading with a longer time horizon, and not trying to market-time or day-trade.