Philippine stock market analysis shows trading outperforms buy and hold and peso cost averaging

A recent analysis of stock investing strategies in the Philippine Stock Exchange shows that trading yields the highest returns. From March 19, 2020, to October 8, 2024, trading generated a net return of 44.38% per year, while buy and hold returned 11.27%, and peso cost averaging (PCA) returned 10.05%. The study considered an initial investment of P100,000 and included transaction costs. Trading involved 12 buy/sell points, while buy and hold assumed a single investment at the market's low point. PCA divided the investment across the same periods. For investors seeking high returns and willing to monitor the market closely, trading is recommended. Buy and hold suits those preferring less active management, while PCA is ideal for smaller investors looking for a more hands-off approach.