You can lose more money when stocks go down than you can make when they go up. In It’s Never Too Late to Get Rich: The Nine Secrets to Building a Nest Egg at Any Age, Jim Jorgenson and Rich Jorgenson write about the downside of a buy-and-hold approach using an example.
A Comparison of Buy-and-Hold and Trend Investing
Jim and Rich write the following:
“An investor who invested a dollar sixty years ago and stayed in the market at all times could have a portfolio worth about $17,000 today. But if he …