There is a proverb in the stock market-the long line is gold. But many investors think this is just a slogan to attract people to enter the market. They always feel that long-term investment is slow and making money is fast, which is not as fast as short-term speculation. So many investors choose short-term speculation in the bull market. However, frequent speculation, chasing up and down, not to mention the cost of handling fees, once you step on the air, there is a risk of being quilted. Therefore, although it is a bull market, most of the people who really make big money in the stock market and continue to outperform the broader market are retail investors who insist on long-term investment.

Why do long-term holdings bring great benefits? There are several main reasons:

1. Good stocks are scarce.

If you buy it and don't insist on holding it, it is equivalent to giving something good to others. The scarcity of resources is a basic feature of social economy, especially high-quality resources. So is the stock market. For example, Kweichow Moutai has only a few stocks at the right price. In 2006, there were hundreds of millions of funds to buy daily limit boards, which shows the attractiveness of these blue-chip stocks.

2. Long-term holding can reduce losses.

Trading back and forth in China stock market costs about 1%, and intraday trading will bring huge capital cost for a long time. Individual retail investors lack information and channel advantages, and short-term access is more likely to be misled. Choosing what to buy after selling is a big problem. In mature markets, the stock turnover rate is much lower than that in emerging markets. Even large institutional retail investors use buy-and-hold strategies more than frequent short-term or band operations. If calculated according to compound interest, the average annual rate of return must reach 25%, and the income of 10 times can be realized in 10 year. In fact, more short-term customers are constantly being eliminated.

3. Long-term holding helps retail investors concentrate on controlling the potential of their own stocks.

After buying and holding for a long time, individual retail investors can focus all their energy on the stocks they hold, conduct a more comprehensive tracking analysis of the stocks, and then judge their intrinsic value.

4. Long-term holding can reduce the possibility of misjudgment.

No matter how good the stock is, the trend will be destroyed in the short term, but optimistic about the purchase of the stock will support the stock to return to its original trend. It would be a pity to misjudge the trend because of short-term stop loss.