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Do Nothing or Do Something: Which Requires More Courage in Investing?

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In the process of stock trading, investors often face two choices: actively making moves or staying on the sidelines. A fund manager in Nevada, who manages a $35 billion pension fund, has chosen the strategy of “doing nothing.” He adopted an almost entirely passive investment strategy—allocating the entire fund to index funds and making no active trades. The biggest decision this fund manager seems to face each day is whether to have a sandwich or tuna for lunch. While the strategy of doing nothing may appear simple, it actually requires immense courage and wisdom. $Tiger Brokers(TIGR)$ Do Something: The Courage to Act Many people believe that taking action in the market is a way to demonstrate courage. Especially in times of intense market volatility and an overload of information, investors are often encouraged to react: buy, sell, or adjust their positions. The courage to act lies in making decisions amidst uncertainty and fluctuations, and bearing the potential risks and rewards that come with those decisions. However, excessively frequent trading can lead to high transaction costs, emotional decisions, and the loss of long-term investment opportunities due to chasing short-term fluctuations. Do Nothing: The Wisdom of Inaction On the other hand, the strategy of staying on the sidelines, or "doing nothing," may seem simple or even passive on the surface, but in reality, it requires more courage and patience. The Nevada fund manager chose to invest in index funds and hold them for the long term, making almost no trades. This strategy actually reflects a deep trust in the market and a strong confidence in one’s own judgment. Inaction does not equate to a lack of thought. On the contrary, this strategy demands that investors resist the temptation of short-term market fluctuations, stay calm, and not be easily swayed by the ups and downs of the market. Which is Harder: Do Nothing or Do Something? Which do you think is harder to achieve, doing nothing or doing something? Which investment philosophy do you agree with more? What is your investment style? Join the discussion to win tiger coins~
Do Nothing or Do Something: Which Requires More Courage in Investing?

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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