I'm somewhere in the middle when it comes to stock market investing.
I've got nothing but admiration for successful traders, but I have neither the stones, the smarts, the time, or the desire to actively participate in the stock market, and I also lack confidence in my ability to identify consistently top-performing professionals to do it for me (actually I trust them less than I trust myself, but I'm trying to be charitable). However, I also recognize that there are superior returns to be had in the market over the long-term, and to capture a good chunk of that return I've been buying and holding (mind-numbingly boring) index funds for 20+ years. And I'm not changing anything.
Could
I do better as an active investor? Possibly, but only with much time, and effort (to make up for my lack of skill and smarts), as well as luck. Could
I do worse? Definitely. All you have to do is look at the performance of the overwhelming majority of actively traded funds when compared to their benchmark indexes. Then look at the real returns earned from putting money
under a mattress in a bank.
I'm not saying this to be argumentative or bend any of the active traders out of shape, but rather to show those sitting on the sidelines that there's a middle path. Saving and investing for the time when we are no longer able to work is a vital prep, in my opinion, and that goal is difficult to achieve without the benefit of compounded stock market returns.
For shits and giggles, check out the Warren Buffet vs the Hedge Fund bet:
http://www.marketwatch.com/story/buffett-will-win-his-big-hedge-fund-bet-2016-02-18