Your investing strategy is a personal approach based on your goals, life stage and risk tolerance. What’s right for your friend, coworker or neighbor might not be the best strategy for you. There are so many different ways to invest, but two of the most common methods you’ll find are active and passive investing.

There are upsides and drawbacks to both, so it’s important that you understand the full picture of each before you adopt one as an investing strategy.

What is active investing?

Active investing involves a hands-on approach to managing your portfolio. Active investors tend to hand-pick stocks, bonds or other securities that have growth potential, and sell off the ones that don’t. They spend time researching undervalued or up-and-coming investment opportunities, and watch the markets closely.

Oftentimes, the goal with active investing is to time (and beat) the market. There are a few upsides to this

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