The 'buy and hold is better than trading' argument is a funny one.
Trading is NOT the same as long-term investing!
Let me put it like this...
You own a store and buy products to stock your shelves. You want to make money on the products so you sell them as quickly as you can at a higher price than you bought it for so you can pay bills.
But instead of selling the products, you let them sit on your shelf and collect dust because you are afraid of opening your store for business or you THINK you can get more for it next year.
Let me ask you then, what is that product really worth if it is covered in dust, in the box, and sitting on your shelf? Are you going to be able to sell it in a year? This is how you need to look at holding risky assets. If you have a grocery store, that can get pretty nasty pretty quick... Just saying...
Trading is a buy-sell business, PERIOD. You have to treat it like a business or you will never make money.
Very true. Most think it like a casino where money just rolls in.
By the way, to expand upon your analogy, if you are a merchant, you best know what stuff to buy and what the market is doing. Failure to know your customer means you will buy a lot of crap that people do not want.
It doesnt fit ideally, but the old adage holds:
In markets, you make money when you buy; you get paid when you sell.
Seconded.
That's one of the reasons most businesses fails. If a business owner cannot follow up with market trends, that business can only last for a season.
That was eye opening :)
When people finally are able to look at it in that kind of way, then it makes WAY more sense. Coming from a sales and ecommerce background, this was how I had to look at it. It's the best ecommerce business in the world because I don't have to please any customers, lol. No returns, no Karens, it's really quite lovely, lol.
!INDEED my friend :) !BBH !DOOK
@bradleyarrow likes your content! so I just sent 1 BBH(16/100)@thelogicaldude! to your account on behalf of @bradleyarrow.
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Sure, you have to sell eventually. But you could have bought a few thousand dollars worth of Microsoft stock in 1986 and sell it today, nearly 40 years later, for 10s of millions. Try doing that with a box of cereal.
And another person who completely misses the point.
INVESTING IS NOT TRADING!!!
If you have a job and you invest for the long term, cool, but trading is my business... It's how many people make a full time living... You can't make an actual working living sitting on a stock for years. That is something you look for retiring on.
Never said it was. I was just responding to your analogy.
...and of course we all wish we bought bitcoin when it cost pennies...