Buy and Hold - Is it better than active trading?

MillionaireTiger
2023-12-14
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Welcome to Thursday Special!

The $NASDAQ(.IXIC)$ has skyrocketed by 40.77% this year. How has your return been so far?

Some theories suggest that the best way to increase investment is not to try to beat the market but to follow its development. Buy and hold strategy is one way.

What Is Buy and Hold?

Buy and hold is a passive investment strategy in which an investor buys stocks and holds them for a long period regardless of fluctuations in the market.

Imagine lounging on a hammock of financial stability, watching your investments grow over time without breaking a sweat. This strategy is like planting seeds and patiently waiting for the financial garden to bloom.

This may sound somewhat idealistic or surreal, but data is supporting these theories. Legends like Warren Buffett and Benjamin Graham have hailed it as the golden ticket to wealth.

Pros:

  • Low maintenance, low stress – set it and forget it!

  • Perfect for the risk-averse and those with a zen-like patience.

  • Your portfolio is your long-term BFF, always there for you.

Cons:

  • Requires the patience of a saint.

🚀 The Active Trading Thrill:

Now, imagine strapping into a financial Formula 1 car, navigating the twists and turns of the market at breakneck speed. Active traders live for the adrenaline rush of quick gains and sharp maneuvers. It's like playing chess with the stock market, and every move counts.

Pros:

  • Thrilling highs and quick profits for the risk-tolerant.

  • Adaptability to market changes; ride the trends like a pro surfer.

  • Every day is a new adventure in the financial jungle.

Cons:

  • Requires constant attention and nerves of steel.

  • One wrong move, and you might find yourself in the red.

🌟 The Million-Dollar Question: Which Type of Investing You Prefer?

Are you riding the wave with a laid-back "buy and hold" strategy, sipping on your favorite beverage while your portfolio casually appreciates, or are you in the fast lane of "active trading," maneuvering through market twists and turns like a pro?

Are you team Buy and Hold or Active Trading? What's your go-to strategy, and have you had any memorable wins or epic fails?

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • koolgal
    2023-12-15
    koolgal

    🌟🌟🌟I am a Buy and Hold kinda gal.  It allows me to chill out and let the magic of compounding happen.  Active Trading requires constantly monitoring the market.  Perfect for those who loves high Adrenalin, the excitement of the markets, high risk high rewards bets!  That sounds exhausting.

    As the wise Charlie Munger would say " The Big Money is not in the Buying or Selling but in the Waiting."  Investing to me is a marathon, definitely not a Sprint.

    @MillionaireTiger  @TigerStars  @TigerPicks  @TigerClub  @Tiger_SG

    • koolgalReplyHappy Bear: 
      Best of luck my friend 🍀🍀🍀🌈🌈🌈💰💰💰
    • koolgalReplyHappy Bear: 
      We need both - Buy and Hold as well as Active Trading!
    • Happy Bear: 
      I thought im a buy n hold, but it turns out im a trader lol. Well, im actually both depending on which stock
    • koolgalReplyzuma: 
      Happy weekend 🌈🌈🌈🏖️🏖️🏖️
    • koolgalReplyzuma: 
      My pleasure 😍😍😍
  • icycrystal
    2023-12-14
    icycrystal
    am a riding the wave with a laid-back "buy and hold" strategy, sipping on your favorite beverage while your portfolio casually appreciates... [Grin] [Grin] [Grin]

    however, when the market dive down, I'll probably be [Cry] [Cry] [Cry] into the beverage and choking [Spurting] [Spurting] [Spurting]

    now, Santa rally so portfolio is getting into the green zone for most stock... I love Santa... come Santa, put more green into my portfolio [Grin] [Grin] [Grin]

  • Shyon
    2023-12-14
    Shyon
    If you are not a very experienced trader, the easiest strategy is simply buy and hold. As you refer back to the history, the buy and hold strategy usually works, especially on the big giant companies. Never ever use the is strategy in those startup or meme stocks where the fundamental is not stable at all. Other than that, this strategy is good for everyone I believe. Simple and easy.
  • Bons
    2023-12-15
    Bons
    Pick the buy and hold strategy. due to the fact that in the long run the price movement is in solid trend, the price fluctuation will only cost you more of the broker fee and tax.
    as far as I can see, other than the thrill of riding a rollercoaster, basically the buy and hold strategy can give you more if not the same benefit offered by the active trading. for the sake of fairness, I will also reveal that the patient of a saint is a major drawback for a lot of people.
    in conclusion, having the right mindset and strong mentality to endure the harsh weather in the market is a strong point to be able to survive.
  • Aqa
    2023-12-14
    Aqa
    Buy and Hold vs Active Trading. I use Buy and Hold strategy for some stocks with potential to yield significant long-term returns, lower transaction costs due to fewer trades, reduced tax liabilities on long-term capital gains, and the benefit of compound interest. It's also less time-consuming and requires less market expertise than active trading. For the more risky stocks, I use Active Trading strategy because it has many advantages such as the potential for higher returns. Actively monitoring the markets and taking advantage of short-term price movements can generate profits.
  • highhand
    2023-12-14
    highhand
    for the average investor, easier to buy and hold. choose fundamentally strong companies, buy during downturn, hold till company fundamentals deteriorates. so simple. [Happy]
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