Why Buy and Hold is a Terrible Strategy

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!

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6 Responses to Why Buy and Hold is a Terrible Strategy

  1. 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.

  2. Kirk Harney says:

    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!

  3. mike says:

    great advice! very good point never fight the market

  4. Investor says:

    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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