Q.
How a stock is benificial in long term?
Asked by tnnarasimhamurthy p,
28 Oct '08 11:38 am
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Answers (4)
1.
Even a very good stock can plunge your portfolio. Buy and hold strategy is as same dangerous as other strategies.
I personally am against such strategy. During bear markets or some disastrous events you may end up with a huge loss without recovery.
I advocate an active portfolio management, using stop loss and protect my portfolio against downtrends. Some stocks may make you money over a long haul, some can lose you money over that period and it can be a good stock which can turn into a bad one within a day.
Read this what "buy and hold" strategy can do:
http://hellosuckers.net/?p=65
Answered by Martin Zee, 07 Dec '08 12:17 pm
I personally am against such strategy. During bear markets or some disastrous events you may end up with a huge loss without recovery.
I advocate an active portfolio management, using stop loss and protect my portfolio against downtrends. Some stocks may make you money over a long haul, some can lose you money over that period and it can be a good stock which can turn into a bad one within a day.
Read this what "buy and hold" strategy can do:
http://hellosuckers.net/?p=65
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