Stock Investment – Buying and Holding Vs Time
The most important factor in the success of the stock market is the control of risk. Risks, of course, include not only the likelihood that you will lose money, but also the possibility that you will miss an opportunity to make money.
Sensitive Stock Investors use a variety of methods to manage risk. One of them is time. Time means choosing the best time to trade – buy or sell.
Many equity investment literature consider timing as a risk control measure. Most consultants focus only on asset allocation and diversification. For example, whenever you see statistical information about how much you cost, you should "recommend long-term performance statistics based on these asset types in terms of large-cap stocks, small-cap stocks, bonds, cash, etc. In other words,
However, the use of time as an additional method to control risk is ignored or criticized as impossibility.
However, for sensitive stocks Investors, time, that is, not buying and holding everything, is an effective risk control technology.Statistically, when the stock fell, do not invest in stocks, the positive return for the contribution is far greater than the time of full investment.