When it boils down to investing, neither can you sit on the fence nor be a spectator of the market. Simply put, it is either you involve in active or passive trading.

Active Trading is a method that involves frequent trading typically with the goal of beating average index returns. This method of trading can be hourly, daily or weekly. Despite the fact that active trading has Flexibility in volatile markets and expanded trading options, there is a downturn to it and this are Increased risk, Higher fees, hop on the bandwagon and follow trends, whether they’re meme stocks or pandemic-related exercise.

Passive Trading: is a strategy centered on buying and holding assets for the long term. It’s best described as a hands-off approach: You choose a stock and then you hold on through ups and downs with a longer-range goal in mind. Despite the fact that it is not a flashy stock that give investors that adrenaline rush and does not have any exit method in a serious bear market, it comes with a tremendous advantage.

-Lower costs

-Decreased risk

-Increased transparency

-Higher average returns

Whether active or passive trading still depends on your investment goals.

Best

Ambrose Omordion