#HODLTradingStrategy

Yet, the question remains: would you have held onto your investment, or would you have sold it once it doubled, tripled, or even increased tenfold? The difference between modest returns and extraordinary wealth often lies in the ability to hold onto an asset longer term despite market fluctuations.

Warren Buffett, one of history’s greatest investors, does not engage in frequent trading. Instead, he buys businesses and stocks he understands, and holds them for the long run. He believes in the US market. Through this strategy, his firm, Berkshire Hathaway, has consistently outperformed the market—represented by the S&P 500 in the U.S.

The harsh reality of trading is that most retail traders lose money. Despite extensive research confirming this fact, many continue to trade, believing they can outsmart the market. Statistics show that only 1-2% of traders consistently beat the market over the long run, yet countless individuals still chase short-term gains.