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.
To read further:
http://news.morningstar.com/article/article.asp?id=158696&pgid=wwhome1a
All the best,
Dah Hui Lau (David)
dahhuilaudavid@gmail.com
1 comment:
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.
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