Hold is the action of investors holding stocks or not selling stocks for a certain time, even though the market is bullish or bearish, in the hope of making maximum profits and reducing the risk of loss. In general, stock investors have analyzed and have the right time when to hold and when to sell. Apart from that, investors will also hold stock for several reasons, such as the decline in stock prices is only temporary, investors believe in the issuer's fundamentals for the long term, the share value has not yet reached take profit or cut loss.
There are 3 advantages for investors if they apply hold actions when investing in stocks, such as:
1. Profit Compound
Passive income obtained from dividends can be reinvested by buying the same stock or other stocks.
2. Capital Gains will be greater.
In some types of blue chip shares, holding for longer makes it possible to get bigger capital gains.
3. Minimize transaction fees
In some countries, buying/selling stocks will be subject to fees and taxes, so holding will also reduce transaction fees.
There are 3 advantages for investors if they apply hold actions when investing in stocks, such as:
1. Profit Compound
Passive income obtained from dividends can be reinvested by buying the same stock or other stocks.
2. Capital Gains will be greater.
In some types of blue chip shares, holding for longer makes it possible to get bigger capital gains.
3. Minimize transaction fees
In some countries, buying/selling stocks will be subject to fees and taxes, so holding will also reduce transaction fees.
