# Buy and Hold

*Saving & Investing — Finicade finance glossary*

Buy and hold means owning investments through volatility instead of trading around it. Its advantage is arithmetic rather than philosophical: trading costs money, realises taxable gains, and the market's best days cluster inside its worst periods — missing the ten strongest days over three decades can cut a portfolio's final value by roughly half. The strategy is simple to describe and hard to execute, because the hardest part is doing nothing while losing money.

**Also known as:** buy-and-hold, long-term investing, time in the market

**Related terms:** [Market Timing](https://finicade.com/glossary/market-timing), [Dollar-Cost Averaging](https://finicade.com/glossary/dollar-cost-averaging), [Unrealized Gain](https://finicade.com/glossary/unrealized-gain), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases), [Compound Interest](https://finicade.com/glossary/compound-interest)

Source: https://finicade.com/glossary/buy-and-hold