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Academy Module 07

Buy and Hold:
Slow and Steady Wealth

Buy and Hold is a passive investment strategy where you focus on "time in the market" rather than "timing the market."

01. Passive Strategy

What is Buy and Hold?

Purchase an asset and keep it for the long haul—often years or even decades—regardless of how much the market zig-zags in the short term."The stock market is a device for transferring money from the impatient to the patient." — Warren BuffettInstead of trying to find the absolute bottom, you trust that high-quality businesses and economies grow over the long run.

The Secret Sauce: Compounding

You aren't just gaining on your initial principal; you are gaining on your gains.

Initial Capital
₹50,000
Year 0
12% Annual Avg
₹1,55,000
Year 10 (Projected)
Cost of Friction
Minimal
Few brokerage & tax events

Buy and Hold vs. Active Trading

Active trading is a job; Buy and Hold is a lifestyle.

Effort
Low ('Set and forget')
High (Constant monitoring)
Costs
Minimal (Brokerage & tax)
High (Commissions & slippage)
Stress
Low (Ignore the noise)
High (Price-sensitive)
Goal
Wealth Building
Monthly Income

HODL

Crypto Insights

The "HODL" Culture

In Crypto, HODLing means ignoring 20% daily swings to capture the multi-year adoption curve."Pro Tip: HODLing only works if the asset has utility. Holding a 'dead' coin leads to zero, not wealth. Always vet fundamentals."

The Patience Test

If it's so simple, why isn't everyone a millionaire?

The Panic Trap

When the market drops 10%, the human brain screams "Sell!" to stop the pain. Most people exit right at the bottom.

The Boredom Factor

Traders feel they should be "doing something." Constant activity often leads to lower returns than doing nothing at all.

Diversify

Use ETFs or Index Funds to spread risk across entire sectors.

DCA Daily

Invest small amounts regularly to lower your average entry price over time.

Automate

Set it to happen automatically so you don't have to "decide" when news is scary.

Test Your Patience

Try this experiment: Create a "Lazy portfolio" with 5 quality assets and don't touch them for a month. See if they outperform your active trades.

Build Passive Portfolio
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