logo
welcome
SmartAsset

SmartAsset

Pros and Cons of Active Trading vs. Buy-and-Hold Investing

SmartAsset
Summary
Nutrition label

82% Informative

Active trading is an investment strategy focused on the frequent buying and selling of securities to profit from short-term market movements.

Buy-and-hold investing takes a long-term approach with lower costs and less frequent trading.

Here are the pros and cons for each strategy.

Buy-and-hold investing focuses on long-term growth, benefiting from compounding and lower transaction costs.

SmartAsset 's free tool matches you with up to three vetted financial advisors who serve your area.

If you want to diversify your portfolio, here's a roundup of 13 investments to consider.