GLOSSARY TERM
Buy and Hold
Buy and hold means buying investments and keeping them for a long time instead of trying to trade in and out based on short-term market moves.
What does this mean in practice?
With this approach, you invest in assets you believe can grow over many years, such as broad stock market index funds or ETFs and then stay invested through both good and bad periods. You do not try to predict every rise or fall in the market. The focus is on patience, time in the market and long-term growth.
Example
You buy a global index ETF and keep adding to it over the years. Even when markets fall, you do not sell just because prices are down. You continue following your plan.
Why it matters
Buy and hold can help reduce emotional decisions, unnecessary trading costs and the risk of missing market recoveries. For many long-term investors, it is one of the simplest and most effective ways to build wealth over time. "Buy and hold" -ideology is in the core of this website and long-term investing.
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