By Investment U Research Team Passive trading is a term you’ll often hear associated with a buy-and-hold strategy. While the time horizon isn’t nearly as long as indexed investors, passive traders will hold for as long as an opportunity takes to manifest. Often, passivity is synonymous with patience. That said, passive traders will take profits as soon as they materialize and need to have a clear exit strategy.
Most passive traders automate their trades. They open the position, set a stop-loss, set a target price and leave the rest up to the market. While they might monitor and reevaluate their trade levels based on patterns …read more
