Buy and Hold - Is it better than active trading?
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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🌟🌟🌟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
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]
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.
next, I buy the dip of a few other potential companies. if they ever gain more than 20%, I'd consider to take profit. these are my sugar babies
lastly, while accumulating more assets & securities from the above strategies, I'm mastering my day trading skills in demo account. when I gain the confidence, I will utilise my super powers in the prime account one day
For a bullish market it is always easier and less of a headache to buy and hold, however in a sideway trending market that fluctuates a lot, active trading creates opportunities to generate a higher profit even in down trends.
However buying and holding longer term i.e. long term investing normally requires less effort by using time to wait for price to rise. WIth trading, it requires much more skill to accurate prediction price movement in a shorter term. My perspective is that if one desires less time and effort, go buy and hold. If one has the stomach and time to learn and actively trade, it will allow one to have more profits.
I prefer to buy and hold, but I'll sell if the profits are good.
I previously bought some Apple shares at around 130+ and sold at 170+. Took the profits and bought myself a new phone.
Looking back if I hadn't sold, my profits would be even higher at current price of 190+. But if anyone asks if I regretted selling, nope I don't. No one can predict share price movement. What if I didn't sell at 170+ and Apple price crashes instead of going up?
The best is to stick to your investment plan. Never look back and regret, not worth our time and energy.
Just like my friend who bought Sea at 200+, didn't sell at 300+, became 30+. She told me, lucky I bought Apple not Sea. I replied her, lucky I sold at a profit when I had a chance. She didn't. If I bought Sea at 200+, I would've sold even before it hit 300.
It's important to choose the right companies to invest in, but I feel most importantly we should learn to take profit and cut loss instead of holding on blindly.
PCT = Pandas Coffee Talk.
Warren Buffett is HODL (Hold) or Vomit Style. If shares are ok. Will HODL that shares forever & ever. Just forced him to vomit out & take as cash if no better options.
My Pandas Styles is Girl HODL style. If that dress still like to wear no better dress buy. Especially no fungi = a bits losses. Just keep in wardrobe watch & see unless wardrobe dont allow.
Girl Portfolio laws dictate: when a dress flies into a girl eyes. If budget & wardrobe allows. It is considered bought.
US Penny Blue Chips = 1.00USD Tiger Fractional Shares of major shares tickers.
Think it like planting a financial garden. You pick solid investments, plant them, and let them grow over time. Sure, there might be a storm or two, but you trust in the long-term sunshine of the market to make your portfolio flourish. It's like the slow-cooking of investing – let it simmer, and you'll savor the rewards. Just don't forget to occasionally water your garden with a portfolio check to make sure everything's blooming as expected.
The buy-and-hold strategy can be effective for patient investors with a long-term horizon. However, periodic portfolio reviews are crucial to ensure that the chosen investments align with financial goals. Adjustments may be necessary based on changes in personal circumstances, market conditions, or investment objectives.
Overall, it's a foundational strategy, but flexibility and occasional reassessment are essential for continued success.
這聽起來可能有些理想化或超現實，但數據支持這些理論。像沃倫·巴菲特和本傑明·格拉哈姆這樣的傳奇人物稱讚它是通往財富的黃金門票。
優點：
低維護、低壓力——設置好就忘了！
非常適合規避風險和有禪宗般耐心的人。
你的投資組合是你長期的好朋友，永遠在你身邊。
I cannot trade actively as I cannot monitor the market daily due to time difference between Singapore and US. Also, I cannot take the heartache of seeing my hard-earned money going down the drain. I prefer to see my money working hard for me to achieve my financial freedom.