Buy and Hold!
Does It Always Work?
Well,It sure does.Buy and Hold certainly does not mean buying any stock at any time, holding it for an indefinite period and hoping this makes for great investment strategy. Buy and hold is applicable only when a bull market is on. What it essentially means is that you refrain yourself from selling all your good stocks while the markets continue to move north even when you are getting a more than expected return on your investment. The key is to fight off the urge to book profits early and ride the wave right through..
The goal is to make the most of the move and not let yourself settle for crumbs. What you have to do, is not sell while the upward trend continues in the market.Just sit back and enjoy the ride, and just wait for the right moment to get off.
So buy and hold can be hugely rewarding, only if you remember it is not really buy and hold it is more like buy, hold and sell when the time is right.
Well,It sure does.Buy and Hold certainly does not mean buying any stock at any time, holding it for an indefinite period and hoping this makes for great investment strategy. Buy and hold is applicable only when a bull market is on. What it essentially means is that you refrain yourself from selling all your good stocks while the markets continue to move north even when you are getting a more than expected return on your investment. The key is to fight off the urge to book profits early and ride the wave right through..
The goal is to make the most of the move and not let yourself settle for crumbs. What you have to do, is not sell while the upward trend continues in the market.Just sit back and enjoy the ride, and just wait for the right moment to get off.
So buy and hold can be hugely rewarding, only if you remember it is not really buy and hold it is more like buy, hold and sell when the time is right.
posted by Sensex-Blog Admin at 2:57 AM
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