Sunday, September 7, 2014

Buy and hold is a stressful strategy

You may think it is a wild thought. But it is true. Most of the traders going for buy and hold passing though stressful days when market in down trend. In up trends they always searching for a point to exit. 
You do not have to suffer the anxiety of down trends as buy-and-hold investors do .   Holding a stock through a down trend for weeks or months as it falls in value, wondering if you should have sold, how bad the loss is going to get, and risking your financial future on a strategy of "hope" that your stock may one day recover is unhealthy in many ways.  
You no longer have stay looking at stock market screens throughout market hours, which is a burden in light of everything else you have to do every day.  You can follow daily market action if you choose to, but it is not necessary for trading success.  In fact, you can ignore the market all week, as Excella Trader Advisory will update you at week's end.
You do not have to make sense of the market's moves for the day.  Unburden yourself and spend the week doing what you enjoy.  
You do not have to read and comprehend annual/quarterly reports of the stocks you own.  This can be very time consuming and confusing for anyone without an accounting degree, and the information has already been known to, and acted upon, by Market well before you ever see it.
You do not have to anticipate the impact of economic/political news and events on your stocks,another endeavour that is impossible to always figure correctly.  
You do not have to suffer the anxiety of down trends as buy-and-hold investors do .   Holding a stock through a down trend for weeks or months as it falls in value, wondering if you should have sold, how bad the loss is going to get, and risking your financial future on a strategy of "hope" that your stock may one day recover is unhealthy in many ways.  
Finally, as a client of Excella Trader Advisory, take comfort in knowing we analyse your stocks and update our stock recommendations each and every week.


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