Buy and hold

An investment practice which is passive in nature. Buy and hold tends to deliver better returns overtime than trading by the minute. It is a well regarded technique in stock investing by most savvy investors. However, on the negative side, buy and hold also tends to be a poor investing practice as most traders lack the additional effort to do research. Companies do not go on the green forever or on the short term, most businesses are affected by economic cycles where buy and hold strategies won't work well with capital preservation.

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