Investing Tutorial 2: Why buy-and-hold stocks



How should you go about investing in stocks? We believe in a buy-and-hold strategy of holding stocks for the long term. Trading stocks - buying stock when you think they’ll go up and selling when you think they’ll go down - costs you fees each time you trade and is unsuccessful for most traders. It also takes a lot of your time. Obermatt believes in buying and holding stocks for 10, 20 or more years. This saves you trading costs and lots of time. And, most importantly, research shows that even very few professionals can outperform a buy and hold strategy. Watch the video to learn more. Get our free Obermatt Stock Update (see sample): http://o.obermatt.com/subscription/ Watch the next video: https://youtu.be/2Z6ezTdDI9M Entire playlist: https://www.youtube.com/playlist?list=PLXfpebax-e07ko3qZC-TUubiTSDj3OKzp Subscribe to our Youtube channel: https://www.youtube.com/channel/UCBW5Ra7QNmPaWswKvSV8Weg?sub_confirmation=1 Follow us on - Twitter: https://twitter.com/ObermattEn - Facebook: https://www.facebook.com/0bermatt - LinkedIn: https://www.linkedin.com/today/author/hermannstern Find out more about stock investing: http://www.obermatt.com/en/investing/investing-home.html Check out our website for more information: http://www.obermatt.com/en/home.html Transcript So, you have now decided that you want to invest in stocks for your retirement. The question now becomes: how should you go about it? Well, there are two main approaches to stock investment. One, is to buy-and-hold stocks and the second is to trade stocks. Trading in stocks means you buy a stock when you think it will go up in value and you sell the stock when you think it will go down in value. That's a very bad idea for three reasons. First, it will cost you more. Every time you buy or sell a stock you have to pay a commission. Second, it will provide a lower return. Research shows that even when professionals decide to trade in stocks, they make less money than those who buy and hold their stocks. Lastly, but not least, it takes valuable time. Time which you may not have! Buying and holding a stock only requires one investment in your time; namely, when you first buy the stock. Then for the 10, 20, or even 30 years until you retire, while it takes no time at all. And then once it is time to sell again, it takes very little time again to get your money and realize your profit. So, remember the three reasons why you should buy-and-hold stocks : first, it costs less; second, it has a higher return, and third it takes very little time. Disclaimer: Obermatt provides data to the best of our knowledge and belief.This post expresses the views of the author as of the date indicated and the information contained herein will not be updated. Obermatt claims no responsibility for the data presented or for any resulting implications of data usage, according to our disclaimer and liability statements: http://www.obermatt.com/en/investing/disclaimer.html.

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