Why Buy and Hold is a Terrible Strategy

6 Responses to Why Buy and Hold is a Terrible Strategy

1. Seattle Chiropractor Mark Burick says:

   August 18, 2010 at 12:38 am

   That is great advise Courtney. I think that most people buy stocks and they let their emotions get in the way. When a stock drops they hope that it will come back. They don’t want to admit that they were wrong. I have done that in the past and it doesn’t work. Having a stop helps take some of the emotion out.

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2. Kirk Harney says:

   August 18, 2010 at 4:05 am

   I agree with Courtney. Buy and hold does nothing to control the risk. I think buy and hold seduces people for a couple of reasons -1) Buffet does it, and 2) it’s lazy. No watching the market and being involved. Buy and hold could be called buy and forget! I also agree with Mark – people don’t want to be “wrong”. And people get attached to stocks – the stocks take on a personality and become “part of the family”. I’ve only been trading for about 4 months and I can’t imagine trading without stops!

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3. mike says:

   August 18, 2010 at 4:38 am

   great advice! very good point never fight the market

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4. Investor says:

   August 19, 2010 at 7:23 pm

   i agree with you, we need stop losses. Buy and hold strategy only works for good stocks. How to choose good stocks for long term investment?

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   • courtneyds says:

     August 19, 2010 at 7:27 pm

     Of course, what appears to be a good stock today will be bankrupt tomorrow. Look at all the major corporations that go bankrupt every year! Thanks!

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     • Investor says:

       August 20, 2010 at 7:54 pm

       so, what should i do to be a good stock investor?

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