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The buy and hold method of trading the stock market has been preached to and from the choir loft. Yet it is one thing to hear and know that this is a solid investment tactic and another thing in which to follow through when your stock has dropped 20 points during the course of a single afternoon.If you have experienced a bear market, you know how difficult it is to stick with your original investment strategy. Should you sell now and protect your capital? Should you wait? Will it bounce? If you sell now will it bounce.

Should I sell half now? Your emotions will often try and get the best of you. A good trader will control their emotions, and assess the current situation. What was the reason for the drop? Was there news released? Has the environment in which you are now trading in changed? The buy and hold strategy requires discipline. Nerves of steel are also helpful. Most investors who risked more than they should will often head for the hills, and often make bad investment decisions along the way.

hoping to make money by playing the up and down movement of the share price, long term investors are looking to own a piece of a company; to share in the story of the company. What your shares represent is a piece of everything the company owns. From pens to buildings, you own a portion of it.Owning a portion of a company is no different than owning anything else. From a car to a home, whether you own it outright, or own it with someone else, in both cases, you need to do your due diligence.

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