By Lucas Montero, Technical Analyst at Finanflix
Many times, we've heard about the virtues of "Buy and Hold" and how this strategy would result in great benefits. This can be a double-edged knife; therefore, I invite you to continue reading this report so that I can tell you about this strategy in detail.
This potential strategy is only applicable to bull markets. Applying the "Buy and Hold" in bear markets or notoriously bearish markets, will lead us to generate sidereal losses in our balances as price falls. We lose our money, but we keep the amount of shares or cryptocurrencies in our portfolio.
If we apply this strategy deliberately and do not analyze the background trend under the bias that "Eventually, everything goes up" or "I'm going long", we will only generate significant losses.
By buying and holding assets like “Nikkei 225” ($NI225) we would have been at a loss from the year 1990 to the date. Likewise, if we study gold (NYSE: GOLD) from 2011 to …
Image and article originally from www.benzinga.com. Read the original article here.