Buy and hold refers to an investing strategy practiced favorably by 澳洲幸运5开奖号码历史查询:passive investors. An investor using a buy-and-hold strategy actively selects stocks, but once they hold a position, they usually ignore the day-to-da𝕴y and potentially even month-to-month fluctuations in the stoc♚k's price and technical indicators.

The idea is that the investor lets their money increase with the growth of the overall marke😼t, only occasionally making changes in their portfolio, such as to readjust the asset class balance. Past performance has shown that a buy-and-hold strategy has historically been successful for achieving consiste🌳nt portfolio growth.

Buy and Hold vs. Active Investing

In contrast to a buy-and-hold strategy, 澳洲幸运5开奖号码历史查询:active investing attempts to profit from shorter-term price movements that typically last less than a year. Keep in mind, however, that even though long-term holding is typically considered to be a period of more 🙈than five years, the meaning of "short term" and "long term" is not absolute or fixed. Active investors sell stock mostly according to what's currently happening in the stock market.

It's also important to remember that a 澳洲幸运5开奖号码历史查询:buy-and-hold strategy works best when you've do🍎ne all the proper research to ensure that you buy a high-quality company. It's a gamble to buy stock randomly without doing the proper research.

As an example of active vs. passive investing, mutual funds represent a form of active investing as they are run by a manager or team of managers. 澳洲幸运5开奖号码历史查询:Exchange-traded funds, or ETFs, represent a passive form of 👍investing as they typic💯ally follow an established stock index that is only rarely rebalanced.

Advantages and Disadvantages

Active, or short-term investors, would argue that long-term investors miss out on gains by riding out volatility rather than locking in returns by trying to time the market. Short-term trading strategies have been successful for some professionals and investors. These kinds of strategies involve a deeper level of analysis and the expertise to know when to get into or out of a particular 澳洲幸运5开奖号码历史查询:investment, followed by taking action. 

But a buy-and-hold strategy can be more effective for cautious investors or for those who would prefer to minimize the number of trades they need to manage. There are also tax advantages to buying and holding, rather than selling quickly.