I’ve listened for years about why buy and hold is a great strategy for making money in the stock market. This video tells you why that is not true!
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.
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!
great advice! very good point never fight the market
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?
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!
so, what should i do to be a good stock investor?
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