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Long-Term Investing Vs. Short-Term Trading

You'll hear financial pundits say that buy and hold investing is dead or encourage you to bounce in and out of stocks as if many that have come before have been successful at doing so. The reality is that being successful at short-term trading is extremely low to impossible. Even if you could beat the market in absolute return, after you deduct trading fees and taxes, your return will diminish significantly. A buy and hold investor and a trader who both earn 10% before trading fees and taxes will have much different returns after them. The trader will just have worked a lot harder during the year constantly looking at headlines and charts. The buy and hold investor will have done his or her work upfront and have rest assured that his or her investment was a good long-term holding with good long-term economics... READ MORE