A successful investor needs an agile strategy to consistently and rationally evaluate and adapt to the ever-changing market conditions.

It's like a game plan for managing your portfolio, so you know which goals your trying to achieve, your buying- and selling strategies, limits and risk assessment.

Risk avertion and preference for plessure (want to) before duty (has-to), are incompatible with a healthy financial investment strategy.


Aims to beat the market’s returns by predicting market fluctuations.

  • Involves buying and selling individual stocks.
  • In it for the short opportunities (hours, days, weeks).
  • Might pay financial specialists to actively help beat the market, hoping for higher profits, and therefore often has double or more expenses and active transaction fees.
  • Often use geared broker investment products to increase the volume/profits (options / futures /margin).


  • With the right skills, investment strategy and risk management, investors can outperform a market and indices.
  • Can take defensive decisions to reduce losses.
  • If risks increases, investors can exit specific sectors or stocks.


  • Less tax efficient.
  • Trying to beat the market increases risks and potential profits/losses.
  • There is no substantial proof that active investments guaranties more profits (maybe even “on the contrary”)


Aims to track the market’s performance by giving you returns and dividends.

  • Involves buying and holding assets including Index funds, ETF’ and alike.
  • In it for the long run (5 - 10+ years).
  • Invests in long term, low yearly expenses, high risk/profit assets.
  • Won’t pay others to beat the market, and keeps more of the profits, via low yearly costs/expenses.
  • Almost never sell any assets.


  • Buy and hold strategy doesn’t invite high annual capital gains tax.
  • Lower fees
  • Transparency lets you know which assets are in the index fund.


  • Less likely to outperform the index.
  • Investors are unable to act if the market goes into decline.


  • Active investing requires a hands-on approach, typically by a portfolio manager or other so-called active participant.
  • Passive investing involves less buying and selling and often results in investors buying index funds or other mutual funds.
  • Although both styles of investing are beneficial, passive investments have garnered more investment flows than active investments.
  • Historically, passive investments have earned more money than active investments.
  • Active investing has become more popular than it has in several years, particularly during market upheavals.


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