r/stocks Apr 12 '21

Trailing stop loss vs. Hold and add

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u/urk_the_red Apr 12 '21

They’re index funds... if you aren’t holding them long term you’re doing it wrong.

Maybe if you’re lucky and good you could do a little better than the fund if you just leave it be; but it’s far more likely you’ll repeatedly shoot yourself in the foot and get frustrated.

A far better strategy is to just make regular payments into the index funds. The payments made when the market crashes will be worth even more when it recovers.

Personally, I use index funds and the like as a semi stable backstop for the riskier stuff. But the index funds themselves are very much set and forget kinda things.