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Saturday, September 23rd, 2017

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Buy-and-hold stock investing versus stock Swing trading?

4

Which of these is best in your opinion, and why?
No click here to make money links or I will report you!

Comments

4 Responses to “Buy-and-hold stock investing versus stock Swing trading?”
  1. cainvest1 says:

    Numerous studies have shown that retail investors do better with buy and hold than any type of active trading as they tend to churn too much which burns up returns with commissions and taxes.

    If you are disciplined and have a good risk management program Swing Trading can be attractive, but costly from a tax perspective. The 15% long-term capital gains rate beats most people’s marginal tax rates. But money can be made in both types of investing.

    There is no ‘firm’ answer because it depends on the skill of the investor.

  2. MACD says:

    During the 1980s and 1990s….Buy and Hold. Dow Jones Ind Avg went up 1,200 %

    From 2000 – today….Swing trading. Dow Jones Ind Avg is where it was 10 years ago….even with the 60% Bull Market rally off the March 2009 lows.

    This will change again someday but not for some time. History moves through major Bull/Bear Market cycles.

    Good luck.

  3. Doctor Deth says:

    depends on how frequently you are trading – the buy and sell sales commissions could eat up your profits

  4. zuma says:

    “Best”….Both….

    Why put restrictions on yourself…Use what works, when it works, for however long it works.
    http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=S+P500&sid=&o_symb=S+P500&freq=2&time=13&x=31&y=12
    If you “Bought and Held” the S+P 500 index for10 years the return is -21%….Within that 10 years a “Buy and Hold” trade lasted from 2003-2007=66%..I included that you probably missed the exact bottom, and the exact top..and if your liberated you “shorted”..(my preference etf’s) when it fell off the cliff..Then in March of 2009, with no fear you bought the bottom swing trade which if you waited till full year you got the long term capital gains, and some where around 71%.
    Today with $8 trades, the major swings are profitable.Volatility is here to stay.

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