Many new investors are told that the most successful investing strategy is to buy-and-hold. However, is there any validity to this advice? Are there any active trading strategies that can beat just buying and holding an index?
Today, Tom Sosnoff and Tony Battista look at 3 basic active trading strategies and compare these to buying and holding the S&P 500. They find out that the worst performing strategy was just buying and holding. Additionally, the guys find out that buying and holding has the largest standard deviation of returns. These makes it a riskier investment than many people tend to believe!