One of the most common types of investment strategies is the ‘buy and hold’ investment strategy.
This is mainly based on the concept that the stock market over time will provide you with a certain rate of return regardless of price fluctuations in the short term.
The use of buy and hold strategy does not necessarily mean that stock investors have to hold a stock forever.
There are certain risks associated with the use of buy and hold investment strategy.
If you invest and buy stocks near the end of a bull market you may have to sell at a loss or wait a longer period until the stock comes back to the bear market.
The success of this strategy is depending on what stocks you have chosen and what timeframes you are holding. You will need to rebalance your portfolio by selling poor performing stocks and keeping winning stocks.
Please visit the site Finance Learners to learn more interesting stuff on stock investing basics.
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