A hands-on approach requiring an individual to act in the role of the portfolio manager. The goal of active investing is to beat the average returns a trader would expect if they simply invested and left the investments alone. This involves a far deeper level of analysis, as to get these returns, one must be aware of short-term price fluctuations and react correctly to them in a timely manner. This requires the portfolio manager to know exactly the right times to buy or sell (and be correct more than 50% of the time).
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Active Investing.