5. Investment strategy: buy and hold
This strategy is beginner-friendly and the risk is low. It is a simple investment strategy and it is long-term, so it can be put together with other investment strategies.
If you choose to go with this strategy, you will be able to buy a stock and hold it for many years without selling it. It's not just about 1 year or 5 years - this is a strategy where you hold onto your shares for 10, 20 or even 50 years.
This strategy is based on the fact that there is time in the market, i.e. the expectation that this is better than having to time the market.
That's why this strategy is also one of the most rational strategies, as it relies on data, rather than impulse.
In practical terms, this investment strategy is based on the idea that it is better to stay in the market for a long time and make a lot of money over a long period of time, than it is to invest at a very specific time and make a lot of money there. This means letting the market do the work, rather than timing investments according to the market.
Historically, the stock market has risen by 7-10% a year on average, despite fluctuations from month to month and year to year. Therefore, the risk with this investment strategy is also low, as according to historical data the market behaves that way.
The Buy and Hold investment strategy is a simple strategy that is easy to get started with. You won't have to invest nearly as much time in this strategy, while experiencing steady returns over time. However, you should be aware that this is not a strategy you make quick money on.