Wednesday, May 25, 2022
Visions Journal
  • Automotive
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Law
  • Real Estate
  • Shopping
  • Tech
  • Travel
No Result
View All Result
  • Automotive
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Law
  • Real Estate
  • Shopping
  • Tech
  • Travel
No Result
View All Result
Visions Journal
No Result
View All Result

What is Buy and Hold Strategy in Share Market?

by Fenix Nalin
1 year ago
in Finance
3 min read
0
What is Buy and Hold Strategy in Share Market?
Share on FacebookShare on Twitter

When you open trading account you are eager to invest in different companies based on online trading course you get from traditional experts. Remember, most brokers and financial consultants want you to invest in companies that offer them higher margin. Study the market, do your own research before making investments. Stop investing in managed mutual funds and start investing in index mutual funds or index exchange traded Funds. Stay invested for long term basis into an index fund in BSE index or NSE index.

Smart Funds Investment

Same strategy must be applied in buy-hold stocks. If you want to buy-and-hold, then buy-and-hold  index. Use index ETFs for easy entries and exits when needed, even intraday. Never buy a mutual fund with a load fee. Stop subsidising mutual fund manager’s lifestyles with managed funds and focus on investing in your own lifestyle. You are not earning money to fulfill monthly target of mutual fund managers especially those who make tall claims and when it boomerangs they blame the market conditions. Top 5 index funds in India hovered around 16% return as compared to last financial year.

Don’t Buy-and-Hold for Bears and Market Crashes

The buy-and-hold investing strategy is a commit to investment on the stock market going up over the long term. During the end of millennia, the Indian stock market returned an average of about 12% a year, so there were plenty of reasons to party when it was 1999. Buy-and-hold was considered the master mind strategy and all pullbacks were just buying opportunities. This was even more true in the 1990’s because that decade returned about 16% a year on average, and the 1980’s returned over 11% a year on average. Both the decades due to emergence of heavy bull traders and tech boom in the world. Buy and hold strategy is good for serious and patient investors who stay invested irrespective of bears and market crashes.

Buy and Hold Long Term Investment

Buy-and-hold investing looks great in hindsight. Long term, the stock market always bounces back and all stock market miscalculated investments are compensated if you hold a diversified basket of growth stocks, value stocks, income producing, and international stocks. The idea is that you buy them at any time and hold them until you retire. Is it really that easy? The problem is timing and investor emotions.

Buy and Hold as a Retirement Plan

Buy-and-hold is a trend following trading system for stocks in trading account. Your entry signal is anytime and all the time. Your exit signal is when you approach retirement and start to diversify into bonds, or pull out your money from stocks for living expenses. This is a system that buys and sells based on the premise that stocks will always go up over long periods of time because of the growth in the market based on new companies that create new technology, purchasing power due to continuous population expansion.

Buy and Hold Disadvantages

Buy-and-hold advice would have been just to hold on, it will work out in the long run, and stocks always go back up. That would have been a ride that few professional money managers could withstand, much less the average investor. The problem with buy-and-hold is that we have a limited amount of time to make our returns. And this is one of the major disadvantages of buy-hold strategy. When we are fortunate enough to participate in a bull market, we have to have a process for locking in those gains in the short term and wait for the next bull run.

You can learn about different types of strategies when you download best app to learn trading for stocks in India.

Related Posts

Bitcoin Wallet Fixes – The ‘Serious’ Security Threat
Finance

Bitcoin Wallet Fixes – The ‘Serious’ Security Threat

April 9, 2022

A Bitcoin bull run in 2017 led to the price rising to around $20,000, which has resulted in an increase...

Blockchain: the basic technology of cryptocurrency
Finance

Blockchain: the basic technology of cryptocurrency

December 28, 2021

Cryptocurrencies all work on the same principle: the Blockchain. They are a series of numbers saved on a computer in...

4 Tips for Forex Trading
Finance

4 Tips for Forex Trading

June 21, 2021

So, let’s say you have already spent a considerable amount of time learning the basics of trading stocks and company...

Bitcoin VPS Hosting – What Sets It Apart From the Rest?
Finance

Bitcoin VPS Hosting – What Sets It Apart From the Rest?

May 25, 2021

If you have not tried bitcoin hosting before, now is the best time to do so. It comes with many advantages, such...

Next Post
List of Popular B.Tech in Aeronautical Engineering Colleges in Vadodara

List of Popular B.Tech in Aeronautical Engineering Colleges in Vadodara

Recent Posts

  • 5 Contemporary Office Makeover Ideas May 25, 2022
  • Benefits of making fashion stylist your career May 18, 2022
  • CAR-T Therapy Shows Great Potential as a Gastric Cancer Treatment May 17, 2022
  • How To Find the Right Condo swimming instructors for Your Next Vacation May 12, 2022
  • A Call for Physicians to Adopt Next Generation Sequencing Technology May 12, 2022
  • How can a reputable SEO agency help a firm? April 22, 2022
  • A guide to SEO success for beginners April 21, 2022
  • Doosan Infracore Steps Up 2nd Production Base in Mainland China Completed April 20, 2022

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • Mail Us

© 2020 Visions Journal - All Rights Reserved.

No Result
View All Result
  • Automotive
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Law
  • Real Estate
  • Shopping
  • Tech
  • Travel