Trading vs Holding: Which Approach Makes More Sense for Stock Investors?

[Olamidetechie]

For an average person who trades stocks and wants to transition to being a holder, what advice would you give them? I'm asking because of a recent update I heard, and it looks like being a trader doesn't bring as much profit as being a holder who just sits and lets their investment do the talking.

Let me explain my pain point better. Imagine you are holding AI related stocks like rNVDA, rAVGO, or even rGOOGL. Instead of constantly entering and exiting trades to make profits, someone could explore dual investment to earn APR while setting a target price at which you would be willing to buy or sell, depending on the product's settlement conditions.

For example, imagine rNVDA or rAVGO is currently trading at $110 on bitget, but you would prefer to buy at around $100, you can set your target price and duration. If the settlement conditions are met, you may receive the settlement in the designated asset, potentially allowing you to acquire the stock exposure at your target price while earning a return according to the product's terms.

This got me thinking about the average trader who spends hours analyzing charts, looking for entries and exits, and sometimes losing a good portion of their capital trying to catch every move. Could a more patient approach, where you hold assets you believe in and use dual investment strategically, be a better alternative?

I'm not saying trading is no longer profitable. Trading still has its place, especially for people with a tested strategy and proper risk management. But perhaps the real question is whether we have been overlooking the opportunities that come with holding, or do you believe active trading will still offer better opportunities over the long run?

[PostQuantumBTC]

The answer is in the reports, trading is not what that gives money to people. The big men know what they will do to take your money from you is what I think trading is. Also those that are holding good asset will take the money from most traders after doing less work.

It can be stock or bitcoin or a commodity, just do not fear when their prices are down, it is the best time to buy them.

I have seen duel investment before but I have not gone for it before because of the huge ROI which makes it look suspicious to me.

[AVE5]

For an average person who trades stocks and wants to transition to being a holder, what advice would you give them? I'm asking because of a recent update I heard, and it looks like being a trader doesn't bring as much profit as being a holder who just sits and lets their investment do the talking.

Trading is a day-to-day marketing that generates profits daily or within the short terms.
It's also more of risk to indulge on because, you'll be depositing your emotions on it over uncertainty with your funds or capital liable to be lost maybe out of having outdated product'sproduct's in the store or that you lack successful trading strategies because it's always competitive with other traders and with risk of uncertainty on predicting when to get favoured or patronage as a stock trader.
Investment is based less risk but more of long term holding demands to make profit.
So tramydTRAMYDERconsiders to swap in to investment should take note because the profits doesn't flow as  the day-to-day markets.

[BitMaxz]

We're talking about stocks; I think holding is better if we are investing in stocks. If you know the price history and have deep knowledge about those stocks, just timing the buy, you can hold them for the long term, which could build wealth for the long term compared to trading.

Take note of Googl; it has had a massive dump happen lately. I don't know what the reason is, but I heard it is because of FED policy and then later the release of bullish news that made the price stop dumping.

This is another buying opportunity, but the problem is it is currently under bearish structure, as a trader buying right now is risky if you are an investor who can hold for the long term. Just like my previous statement, timing is still needed if you choose to be stock investors and hold for the long term.

[shinratensei_]

Biggest problem with trading is the trader being too hasty when they are making profit, a small increase is enough for them to take the profit while always holding indefinitely when they are losing. It unknowingly become a profit cap for them, they can't profit big because they are afraid of the market going down again and yet they can lose whole thing, which might be the reason why holding is more profitable for some people. Dual investment is no different, You got capped upside and no cap downside, this product isn't that great beside the APR, always remember that when you use dual investment strategy, you become options writer and it comes with risk. Best strategy so far is just buy the crypto or stock you believe in and forget. Always worked most of the time.

[Oshosondy]

Biggest problem with trading is the trader being too hasty when they are making profit, a small increase is enough for them to take the profit while always holding indefinitely when they are losing.

You are right, traders are not patient at all. Another problem traders have is that they may determine to earn an amount daily in average. They will earn it and still be greedy if they earn if easily. They will want double of it or triple their profit or more which will be a trap for them that will make them lose their money. Among traders, swing and margin holders are the most patient and I think are the most profitable.

[SatsPH]

You are right, traders are not patient at all. Another problem traders have is that they may determine to earn an amount daily in average. They will earn it and still be greedy if they earn if easily. They will want double of it or triple their profit or more which will be a trap for them that will make them lose their money. Among traders, swing and margin holders are the most patient and I think are the most profitable.

And probably this is one reason why it is being compared to gambling itself. I mean you day trade, you already make profits let's say $20-$100. So regardless on how you see it, it's already money in your pocket.

But then emotions sets in, you want to be greedy just like in gambling and you wanted to at least double it because you think you can. But then suddenly it went south and you lose it in the next trade. So it's really a trap and then making the same mistakes again and again.

[Kelward]

Whether it's cryptocurrency or stock trading is risky while holding is far less risky so far you're holding an asset that have built trust in the market, so it pretty much depends on our risk appetites, trading can give traders fast profit and it can also blow your account very fast if you're greedy or inexperienced. Being an investor beats being a trader on the long run, except for very few traders that are profitable on the long term majority of traders counts more loses. Unlike trading you don't have to be a professional to hold stock and cryptocurrency, what you have to do is research the asset that you want to hold so you won't be among bag holders of shitcoins or stock.

[joniboini]

-snip- potentially allowing you to acquire the stock exposure at your target price while earning a return according to the product's terms.

I'm not sure how exactly this plays out. Is there an exchange that offer this kind of trade? I don't get where the returns comes from if you haven't bought any stocks. Do you have to lock your funds somewhere and make a deal with the market maker you'll get 1% per year but if the price falls to your targeted price, you will opt out from that and acquire the "stocks" instead? Based on this limited understanding it makes no sense where the return comes from if you're just holding your coins.

[Dr.Bitcoin_Strange]

Holding is very good because you don't lose anything unless you sell that asset at a cheaper price below the amount you have bought them. If the value drops below the amount you bought them due to certain market conditions, you will only be experiencing an unrealized PnL but as long as you don't sell at that time, you can still make profit from your asset when the value jumps during good market conditions.

 However, trading exposes you and your capital to much bigger risk, you can lose all your asset or capital depending on the type of trade you are doing. Leverage trading means you are not holding the actual stock but you are only trading its price movement against a stable currency, for example rNVDA/USD. That's a very risky type of trading but spot trading can be less risky too, like the example you gave, you can set a target to buy the asset at $100, if it executes, you can again set an order to sell it at $110. By doing so, you are buying at a low price and selling immediately once the price appreciate. Holding is better, you don't look at the chart every day to observe price movement.

[Finebone]

The answer is in the reports, trading is not what that gives money to people. The big men know what they will do to take your money from you is what I think trading is. Also those that are holding good asset will take the money from most traders after doing less work.

I disagree with you that you cannot make money from trading . You can make money in trading if you are good in the craft, but it takes a lot of effort in learning and mastering before you can get to the point where you can be making money from it consistently.  I agree with you that it takes less effort to make money as a holders, because all you just need to do is to buy and holding, but it's not everyone that is patient enough to hold unto their asset for a very long time, since they will want to be making money from the market daily.

[Nathrixxx]

Since this is all about stocks are not cryptocurrency investment/trading, I wouldn't advise any investor to take too much time holding on stocks asset because sometimes they even fall the more as time goes by, but when it comes to bitcoin investment in cryptocurrency, the more you keep holding the better it becomes for you to be profitable, you can as well choose to trade and make profit as long as you have the competence to do so.

[CryptoBuds]

And probably this is one reason why it is being compared to gambling itself. I mean you day trade, you already make profits let's say $20-$100. So regardless on how you see it, it's already money in your pocket.

But then emotions sets in, you want to be greedy just like in gambling and you wanted to at least double it because you think you can. But then suddenly it went south and you lose it in the next trade. So it's really a trap and then making the same mistakes again and again.

What you're describing is greed. And yeah, controlling your emotions and your greed is the top reason traders lose money, not so much a lack of knowledge or skill.

But that's not the reason trading is often compared to gambling . It is because both involve probabilities and uncertainty. You can't know the outcome before it plays out, even after doing your homework. A trader can do everything by the book and still endup in red because of a sudden swing in market.

[Alpha Marine]

trading is not what that gives money to people. The big men know what they will do to take your money from you is what I think trading is. Also those that are holding good asset will take the money from most traders after doing less work.

Stock trading is very different from crypto trading.
Trading stocks is very profitable. In fact, I can say it is more profitable than just holding if you do it right. It's people who just sit at home and try to trade stocks on their own that make it look unprofitable. If it were not profitable, there wouldn't be stockbrokerages and funds that trade stocks. They will all be buying and holding.
These companies have quantitative analysts, research analysts, traders, auditors, legal counsel, risk officers, accountants and many other professionals that all work together to make trading as profitable as it can be. So you cannot compare that with a person who just sits at home and works alone in his set-up.
I think stock trading is relatively better than trading crypto. Stocks are backed by a company, so even if it's volatile and complicated, to me, it's just better to analyse than crypto. Also, it has over a century of records and history.

[Fivestar4everMVP]

This got me thinking about the average trader who spends hours analyzing charts, looking for entries and exits, and sometimes losing a good portion of their capital trying to catch every move. Could a more patient approach, where you hold assets you believe in and use dual investment strategically, be a better alternative?

I'm not saying trading is no longer profitable. Trading still has its place, especially for people with a tested strategy and proper risk management. But perhaps the real question is whether we have been overlooking the opportunities that come with holding, or do you believe active trading will still offer better opportunities over the long run?

I have traded and I have held, and what I have to say is that trading has never been better than holding and I doubt it ever will, but the thing is that as an investor, you just have to be very sure of what you are holding so you don't spend your money and waste your time holding the wrong assets where losses will be the story by the end of the day.
One thing trading does is that it keeps you active in the market, you feel you have a job and a responsibility, trading turns one into an active thinker and a very busy person, but unfortunately for some traders, they are simply busy losing money and opportunities.

But investing and holding (on the other hand) is a calm and silent way of making good money off the market but only if you know your left from your right, know the right assets to buy and hold and also know how long to hold 'em.

[Texac]

trading is not what that gives money to people. The big men know what they will do to take your money from you is what I think trading is. Also those that are holding good asset will take the money from most traders after doing less work.

Stock trading is very different from crypto trading.
Trading stocks is very profitable. In fact, I can say it is more profitable than just holding if you do it right. It's people who just sit at home and try to trade stocks on their own that make it look unprofitable. If it were not profitable, there wouldn't be stockbrokerages and funds that trade stocks. They will all be buying and holding.
These companies have quantitative analysts, research analysts, traders, auditors, legal counsel, risk officers, accountants and many other professionals that all work together to make trading as profitable as it can be. So you cannot compare that with a person who just sits at home and works alone in his set-up.
I think stock trading is relatively better than trading crypto. Stocks are backed by a company, so even if it's volatile and complicated, to me, it's just better to analyse than crypto. Also, it has over a century of records and history.

Sounds like you're comparing retail traders with pro trading firms, not stock with crypto.

Technically, there's very little difference between two market. The same principles of market analysis, risk management...can be applied to both. The main differences come down to the characteristics of each market, such as trading hours, and volatility, liquidity, and what drives prices...

That said, I kinda agree with you that stocks are relatively better than crypto. Stock market has deeper historical data, better liquidity and less manipulation. So analysis stays more grounded in reality instead of leaning so heavily on sentiment and speculation like crypto does.

[Rruchi man]

Whether it's cryptocurrency or stock trading is risky while holding is far less risky

Exactly. Trading has the potential to give you good profit faster than an investment would, but it also carries a significant risk that you could also lose out while trying to make more.

A steadier approach to profiting from either stock or even cryptocurrency is for you to just invest with a strategy that is comfortable for you.

Avoid trading if you are not skilled enough for it no matter how glamorous it is painted to be.

[knuckey]

or do you believe active trading will still offer better opportunities over the long run?

In terms of opportunities, active trading isn't very effective in the long run. A buy-and-hold strategy offers far more opportunities. Besides profiting from price, dividend offers are also an advantage. It's clear that you should consider your reasons for buying before making a purchase.
A hold strategy is also less cumbersome because it eliminates the need for constant market analysis, which adds to market speculation.