Don't chase small gains
It generally suggests focusing on a long-term investment strategy instead of trying to make quick profits from small gains. Here's why this approach is recommended:
1. High Risk: Chasing small, quick gains can lead to taking excessive risks, which may result in greater losses than anticipated.
2. Volatility: The stock market can be unpredictable in the short term. Small gains often come with high volatility, making it hard to consistently profit.
3. Fees and Taxes: Frequent trading in pursuit of small gains can rack up trading fees and tax liabilities, which eat into your profits.
4. Emotional Decision Making: Chasing small gains can lead to emotional investing, where decisions are based on fear of missing out (FOMO) or other biases rather than sound investment principles.
5. Opportunity Cost: Time and effort spent chasing small gains could be better used on other investments or activities with higher long-term returns.
6. Long-Term Growth: A focus on long-term investments and a buy-and-hold strategy can lead to more stable growth over time, with the power of compounding.
Instead of chasing small gains, many investors find success by building a diversified portfolio, investing in quality assets for the long term, and sticking to a well-thought-out investment plan.
1. High Risk: Chasing small, quick gains can lead to taking excessive risks, which may result in greater losses than anticipated.
2. Volatility: The stock market can be unpredictable in the short term. Small gains often come with high volatility, making it hard to consistently profit.
3. Fees and Taxes: Frequent trading in pursuit of small gains can rack up trading fees and tax liabilities, which eat into your profits.
4. Emotional Decision Making: Chasing small gains can lead to emotional investing, where decisions are based on fear of missing out (FOMO) or other biases rather than sound investment principles.
5. Opportunity Cost: Time and effort spent chasing small gains could be better used on other investments or activities with higher long-term returns.
6. Long-Term Growth: A focus on long-term investments and a buy-and-hold strategy can lead to more stable growth over time, with the power of compounding.
Instead of chasing small gains, many investors find success by building a diversified portfolio, investing in quality assets for the long term, and sticking to a well-thought-out investment plan.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.