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

[Big Dirams]

Trading still has its place, especially for people with a tested strategy and proper risk management.

It has its place in all times, why people would think it's not profitable? it is still profitable but not with everyone.

I've made profit with it and I just don't see myself doing it on a daily basis.

Trading still has it place and trading is very much profitable. New traders keeps coming into trading almost everyday and many faces losses but there are few that are making success in trading and even if as a trader we made a single profits in a week and others are losses then it doesn’t mean we aren’t making progress. A single profits in a week in some trading can take cover for every losses made in a week so making profits doesn’t actually mean we should be making it everyday.

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?

Choosing one or the other when we know that both has its opportunities. But with my experience, it's better for me to hold. So you got to know which one is more effective to you.

Trading and holding are good but we humans have our own preferences, some people might tell you that they prefer to hold than trading because the risk in trading is high while some would say they prefer to trade than hold because they make profits within short period of time.

[Nothingtodo]

Trading is just a way to bring temporary profits and you can get some money by trading daily or weekly but to get big profits permanently you must do holding and the alternative of holding is not through trading.
Many people may not give importance to holding but if you analyze the holders in the past then only holding and patiently holding it till the specific target has played a leading role behind the success of each holder.

[boyptc]

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.

I wouldn't argue about active trading because the reality about it is that many are losing than earning on it.

Holding is proven and even if doesn't have a lot to offer for opportunities or however people are looking at it. It's one of the best financial decision that one can ever do.

Stock investors are holders too, they wait for the right time before they sell a stock so holding suits them.

[ScamViruS]

Among day traders, there is a common tendency: when they make a profit on a trade, it boosts their confidence often to the point where they engage in excessive trading, which ultimately leads to losses. Another trait observed in many traders is the attempt to achieve a specific average percentage of profit each day; setting such targets often creates further problems. The assumption that stocks can always be held indefinitely is also problematic, if a major market correction occurs, an investor especially one who bought at the peak and is currently facing losses might succumb to panic.

Therefore, whether one is an investor or a day trader, it is essential to possess a sound and in-depth understanding of the market, ensuring the capability to handle any situation that may arise.

[Silverstonez]

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.

I hear people say that trading is very profitable, but it isn’t not always the case. Trading is very risky, and it’s not advisable to make it your full time job if not you will have yourself to blame. My advice to you op, is to start accumulating bitcoin not just any cryptocurrencies, ones you have accumulated enough then you can hold it for the long term. Trading is just another way to lose money in the crypto space.

[AakZaki]

Trading is just another way to lose money in the crypto space.

I think in this section you need to underline, because your statement is not entirely true, it may be misleading.
Do you realize, when you can't trade, then you also think others can't trade?

I've been studying crypto for over a decade including learning trading, do you think I'm always losing money? That's nonsense, bro.

Exactly a few years ago I quit my job at one of the well-known companies in my place, and until now I have focused more on making a profit in trading, for me 50$ a day in trading is easy.

Because I am aware that in trading I never overtrade, so every now and then I refute statements like you say.
If you want to respond to OP, it's clear in the title that he says Stock Investors, so the most reasonable thing is that they should do a Holding in Crypto, unless the OP states a Stock Trader, so what makes sense to them is Trading, it's as simple as that.

[jossiel]

Trading still has it place and trading is very much profitable. New traders keeps coming into trading almost everyday and many faces losses but there are few that are making success in trading and even if as a trader we made a single profits in a week and others are losses then it doesn’t mean we aren’t making progress. A single profits in a week in some trading can take cover for every losses made in a week so making profits doesn’t actually mean we should be making it everyday.

In theory, it's profitable but if we apply that to ourselves it will show different results.

Trading and holding are good but we humans have our own preferences, some people might tell you that they prefer to hold than trading because the risk in trading is high while some would say they prefer to trade than hold because they make profits within short period of time.

Both consists of risk.

But with holding, it's better for his preference because he's also into stock market for which at most times he also holds there those companies stock of his choice.

[Alphakilo]

The best approach I have always kept to heart since it might be more difficult for some to actually trade and hold at same time is nothing more than the act of learning to appropriate funds to what seems important so as not to lose out entirely on both trading and holding.
One could invest in active trading if the right knowledge is gained by using about 20% of less of their capital while the remaining 80% or less could be held for long term using passive tools.

The risk however still looms of encountering losses along the way when the wrong or once right asset is invested in, only for it to fall sooner than anticipated.
So I always prefer holding assets I prefer with a guarantee for long term gains like Bitcoin and when it comes to stocks, I also go with the most prominent one, that's if I ever intend to hold stocks for long term also, not because I want to trade it.

[Queentoshi]

Trading is just another way to lose money in the crypto space.

I think in this section you need to underline, because your statement is not entirely true, it may be misleading.
Do you realize, when you can't trade, then you also think others can't trade?

I've been studying crypto for over a decade including learning trading, do you think I'm always losing money? That's nonsense, bro.

Many people like to project what they cannot do on others This is why they always feel like since they cannot trade or since they cannot learn to trade because of its difficulty that other individuals also cannot learn to trade regardless of who they are.
I know that there are many unsuccessful traders but among that very high number of unsuccessful traders there are still traders that are making little by little according to an amount that they are contented with on a regular basis but because they are not making a noise around it Many people are unaware that these traders regardless of the small amount they are making are also successful traders.

Exactly a few years ago I quit my job at one of the well-known companies in my place, and until now I have focused more on making a profit in trading, for me 50$ a day in trading is easy.

even a $10-$20 profit from trading daily is a very good one.

[Pandorak]

Trading is just a way to bring temporary profits and you can get some money by trading daily or weekly but to get big profits permanently you must do holding and the alternative of holding is not through trading.
Many people may not give importance to holding but if you analyze the holders in the past then only holding and patiently holding it till the specific target has played a leading role behind the success of each holder.

Exactly. Trading can be a way to simply seek short term profits by capitalizing on price movements through opening and closing positions within a relatively short timeframe, typically by analyzing lower time frames. Personally, i consider this a good approach for raising additional capital so that you can gradually make purchases for a long term holding. So, when it comes to which approach is better, the answer is definitely holding, especially for those who are truly focused on the long term, as they’ll reap more benefits.

[General_Bitcoin]

Exactly. Trading can be a way to simply seek short term profits by capitalizing on price movements through opening and closing positions within a relatively short timeframe, typically by analyzing lower time frames. Personally, i consider this a good approach for raising additional capital so that you can gradually make purchases for a long term holding. So, when it comes to which approach is better, the answer is definitely holding, especially for those who are truly focused on the long term, as they’ll reap more benefits.

Difficult to agree. This study followed all people starting day trading in Brazil's equity futures market between 2013-2015. Those that lasted for 300+ days had a 97% loss rate and only 1.1% made above the Brazilian minimum wage. https://ssrn.com/abstract=3423101

Not the same market but a warning. In my opinion, DCA from salary is a much more boring and safe strategy. Have you been tracking your trading performance for a full year?

[traderethereum]

People choosing trading or investment based on their capability. They can't force themselves following other people to trade if they can't learn better. But they can become investor as that will not makes them confuse analyzing the market and they only set the plan to buy and hodl and know the time to sell.

If they can learn better, they could become a pro trader but becoming a trader is a choice which people should choose. No one force you to become a trader or an investor so you choose by yourself and what comfortable for you.

I have some friends who trade but they also an invest in Bitcoin. They choose Bitcoin because Bitcoin have a good track so far comparing others. So that is each people option whether becoming a trader or an investor.

[Olamidetechie]

Trading still has its place, especially for people with a tested strategy and proper risk management.

It has its place in all times, why people would think it's not profitable? it is still profitable but not with everyone.

I've made profit with it and I just don't see myself doing it on a daily basis.

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?

Choosing one or the other when we know that both has its opportunities. But with my experience, it's better for me to hold. So you got to know which one is more effective to you.

Nothing beats  holding just like the bitget dual investment, you either hold to get nothing or hold to get extra apr for holding, you can't lose when you play your cards well. The painful was that when i started stocks and others, i never thought of this then, i was just trading with zero precaution, but never too late now.

[Peanutswar]

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.

Wait are you referring a stock trader and become a crypto trader? because basically when you are a trader of stocks you also hodl your shares and wait for the market to pump so it does the same thing. Just the difference is the volatility.

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.

so basically you are referring of staking?

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?

Still the same thing because you are still watching the market just the difference is the time frame. If you are looking for the long term investment, also you have an other funds right there for your short scalpings.

[Cleanshit]

For more easy understanding I like to tag it trading gives you more Chad flow, while holding gives you wealth. Why there is nothing bad if someone choose to follow both niches, in as much there are both paying the bills and it worth the try it should not be a waste of time.

This is how I see trading like fetching water with a cup which you must have to drink everyday but tomorrow you must still have to fetch again and if you stop it also stop and someday bucks get a big hole.

And this how I see holding like digging a big well, and when digging it so slow with no water most time people laugh at you when digging but once done digging it now even pays more than what trading gives.

[free-bit.co.in]

Exactly. Trading can be a way to simply seek short term profits by capitalizing on price movements through opening and closing positions within a relatively short timeframe, typically by analyzing lower time frames. Personally, i consider this a good approach for raising additional capital so that you can gradually make purchases for a long term holding. So, when it comes to which approach is better, the answer is definitely holding, especially for those who are truly focused on the long term, as they’ll reap more benefits.

Difficult to agree. This study followed all people starting day trading in Brazil's equity futures market between 2013-2015. Those that lasted for 300+ days had a 97% loss rate and only 1.1% made above the Brazilian minimum wage. https://ssrn.com/abstract=3423101

Not the same market but a warning. In my opinion, DCA from salary is a much more boring and safe strategy. Have you been tracking your trading performance for a full year?

I disagree too. Trading has never been a good way to build up extra capital. It is a bad idea, tbh.

@Pandorak, If you can really pull steady profits out of short term swings, why even bother switching to something like buy and hold BTC. Right? Now flip it around. If you believe BTC is the better long term play, why not just stack it from day one instead of taking on the extra risk of trading?

Trading is not a cash cow you can milk whenever you wanna buy more BTC. All you're doing is gambling with the rest of your stack.

[Awaklara]

Many people may not give importance to holding but if you analyze the holders in the past then only holding and patiently holding it till the specific target has played a leading role behind the success of each holder.

I think the key is not to hold assets long-term with patience, but rather in the accuracy of selecting assets and your own knowledge regarding investment and planning. If you choose the wrong assets, no matter how long you hold them, their value could decrease. I think it's almost the same as someone who trades. The analysis used to choose assets and the timing to enter and exit trades is very important. Without a trading and investment plan, it will be difficult to make a profit.

[Kelvinid]

No one can tell exactly which makes more sense and more profitable as both can be profitable when done the right way and with the right timing. But which one is safer, majority will still trust holding over trading.

However, it also depends on the qualities and attitudes of the stock investor itself. If he is patient enough to hold like 5-10 years and witness how his money grows, and don't want to get stress with the market uncertainty, he can settle with just holding alone.

But if he has high risk tolerance, has proven skills and strategies and is willing to learn about the technical charts, and is indeed serious in trading like its his own job, he can stick with trading and be profitable in his chosen career in life.

[cxtreenal]

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?

You can adopt the policy of applying the dual investment method strategically, but not at the beginning. You need to focus on investing in the initial stage. You need to strengthen the strategic position in investing without putting capital at risk and give importance to learning. If you expect to make a profit and adopt a strategy to get rich in the beginning, you will be at risk and there will be a possibility of losing capital. When you can realize that you are in a strong position in long term investment and will be able to manage short term trading after gaining experience, then you can adopt the dual investment strategically.

I would recommend that short term strategies will give you the opportunity to make high profits and also have the possibility of high losses. Most folk prefer to take long term positions because there is emotional instability and risk of losing capital in trading.

[Silverstonez]

Trading is just another way to lose money in the crypto space.

I think in this section you need to underline, because your statement is not entirely true, it may be misleading.
Do you realize, when you can't trade, then you also think others can't trade?

I've been studying crypto for over a decade including learning trading, do you think I'm always losing money? That's nonsense, bro.

Exactly a few years ago I quit my job at one of the well-known companies in my place, and until now I have focused more on making a profit in trading, for me 50$ a day in trading is easy.

Because I am aware that in trading I never overtrade, so every now and then I refute statements like you say.

I’m sure people are free to say whatever they feel is appropriate, just as you are free to argue with me about what I said not being entirely true and explain why you think it’s inaccurate.  However, saying my statement may be misleading is something I don’t find cool with, especially when you could simply disagree with my opinion and explain reasons.

I can’t really say that I’m a trader, because I mostly rely on other people’s knowledge. What I mean is that I copy other people’s signals and trade based on them. But even as that, I have never for once assumed that because I can’t trade independently then others can’t trade either.

I respect your opinion, but I don’t think you are right about this one. People lose more in trading than they gain from it, but I don’t know about you. And no matter how you want to paint the picture, it doesn’t change the fact that trading is very risky, and remain one of the easiest way to lose money in the crypto space.