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Stocks Buy and Hold Strategy

By Alfred Fernandes | March 4, 2009

As per my friend Bill Poulos the renowned technical analysis expert the majority of investors in America today are unwitting proponents of the buy, hold and hope strategy. They are heavily invested in equities on a “long term basis” and are not concerned about the daily (or weekly, or monthly, or yearly) ups and downs of the market because they rest easy in the knowledge that the market will go up over the long term. So they buy them, hold them, and are confident or hope that everything works out all right.

But how long is the long term anyway? 5 years? 10 years? How about 20 years? And how comfortable are these investors when the market is actually going down for extended periods of time? Let’s look at some data to try and put this buy, hold, and hope strategy into perspective. Read more……..

If someone told you that you may have to wait 5 to 25 years to breakeven on your investment strategy would you be a willing investor? I doubt it. But that is exactly what millions are doing with their buy, hold, and hope strategy – that is what you call a losing proposition and is not how some savvy investors potentially make money.*

This is another reason for considering alternative investments for a portion of your portfolio, such as a good trading system that has the potential to provide superior returns in non-correlated markets.*

Good Trading.

p.s.  If you liked this article by Mr. Bill Poulos, then you need to  CLICK HERE to unfold his step-by-step trading BLUEPRINT…

stocks buy and hold

Topics: Day Trading, Day Trading Software, Market Trend, Stock Trend, Stocks Investment, Swing Trading | No Comments »

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