Monday, March 13, 2006

How to Be a Buy-and-Hold Investor; March 13, 2006

by Russel Kinnel
In investing, patience is more than a virtue, it's a necessity. If you trade a lot, you will run up increased costs such as commissions and taxes, thus driving down returns. In addition, you risk messing up your long-range plan by altering your portfolio's diversification among asset classes and sectors.

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All the best,
Dah Hui Lau (David)

1 comment:

Anonymous said...

I believe people make the mistake by thinking "buy and hold" = "holding onto your losses". Theres a difference between buy and hold and controlling risk.. If you have a winner and the stock continues to go up, buy and hold is the way to make big money. If you have a losing stock, its best to get rid of it when the loss is small.