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Buy And Hold




The antithesis of buy and hold is the concept of Day Trading in which money can be made in the short term if an individual tries to Short on the peaks, and buy on the lows with greater money coming with greater volatility.

One of the strongest arguments for the ''buy and hold'' strategy is the is fairly valued at all times, then there is really no point to trade. Some take the buy and hold strategy to an extreme, advocating that you should never sell a security unless you need the money {Link without Title} .

Others have advocated buy and hold on purely cost-based grounds, without resort to the EMH. Costs such as Brokerage and Bid/offer Spread are incurred on all transactions, and buy-and-hold involves the fewest transactions for a given amount invested in the market, all other things being equal. Warren Buffett is an example of a buy and hold advocate who has rejected the EMH in his Writings .


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