Today though, many people are quickly starting to avoid the strategy all together. The market in general is not on the same rapid uptrend like it was before, so wouldn’t it make sense to make more money on each individual rise and fall, then a bunch of them combined?

The following video does a good job at showing you why and how the buy and hold strategy is not working in the market anymore. It also offers a solution to try and avoid such pitfalls.

View video - The Game of Buy-and-Hold: It Is Over Forever

When it comes to stocks there are two distinct classes of stock traders, and you should find out the type of the people you are following.

Trader

First, there is the trader. These are people who are looking to quickly move in and out of a stock. This could be just a couple hours, days, weeks or even a few months. It is important to stay up-to-date with current market news.

Traders usually execute trades based on some pattern or imminent company action, but they really have no interest in the long-term aspect of the company.

Investor

An investor is something similar to what people call “buy and hold” traders. They will find companies that are bound to grow, and may never touch their shares till over a year. They do not care about the short-term aspects of the company and do not need to boggle their minds with daily market activity.

Which One Is Best For You

There is really no right or wrong type of stock trader; however, it is really which type of trading is right for you. You can make a great amount of money either way; however, you must consider your time frame, risk, and how much work you want to put into it.

While traders can make more money much faster, they are required to do more work and monitoring than the typical investor. Determine what type of trader you want to be, and then make sure that the people you are following from have the same goals as you.

Chart Pattern Manifest – Learn how to accurately predict stock price movement and limit risk.