Buy and hold

Buy and hold is a long term investment strategy based on the concept that in the long run equity markets give a good rate of return despite periods of volatility or decline. This viewpoint also holds that market timing, that one can enter the market on the lows and sell on the highs, does not work or does not work for small investors so it is better to simply buy and hold.

The anthesis of buy and hold is the concept of day trading in which money can be made in the short term if an individual shorts on the peaks, and buys on the lows with greater money coming with greater volatility.

See also: Buy and hold, Day trading, Equity market, Investment strategy, Long term, Market timing, Shorts, Volatility