No matter how astute you are as an investor, you cannot consistently beat the market. Second, every time you sell shares, you will pay taxes on your gains. Once you calculate the after-tax effect of selling your stock, you might realize that buying and holding may be a better option. Use the equity built up in your portfolio as collateral to purchase other shares in the company you own, in case the price falls and you don't want to sell any of your original shares. If you regularly invest in blue chip companies, you will eventually see the value of your portfolio grow over time, regardless of if you bought on a high or on a dip.
Many investors confuse the process of building value with the analysis of a stock's current price.
If you believe in the company and see potential for future growth, you should buy the stock regardless of its current price conditions. The moral here is not to worry about the market's tribulations. The story of the tortoise and the hare can be applicable to investing, just as easily as it can to real life. Buy and hold, regardless of the market's movements, and don't let sudden drops in the price of a stock scare you if the fundamentals of the company essentially remain the same. The Best Online Investment Research Sites Picking the right stocks means researching the right information.