What is passive investing? | Forex Trading and Money Exchange

What is passive investing?
Posted 23 July, 2009 by Jovani Javier Sharpe from India
my name is Jovani from India. Although i ain't new at all this forex trading arena, there is something i don't understand: what does passive investing mean?
FX Sage Answers:
That's an exciting term, Jovani. Passive investing is An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance. Also known as a buy-and-hold or couch potato strategy, passive investing requires good initial research, patience and a well diversified portfolio. Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable.
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