| Decide whether Short term or Long term in Stock Market |
Decide whether Short term or Long term in Stock Market
Daily we get emails to clarify whether they should go for short term investment or long term investments.
Have a look on following points which will clear most of your questions regarding above two investments methods.
About Short term Investments
1. Investment is done for short period like from one week to several months.
2. Returns will be based on mostly on news; speculations, rumors, new product launch, and short term technical analysis and so on. So the risk is high because the factors may or may not affect the stock price, even if they affect then also it is very hard to say how long will be the effect and whether the effect will be positive or negative so to conclude the over all scenario it is considered as risky deal for investing short term in stock market.
3. The returns could be low, moderate or high it all depends on how market takes up the stock price.
4. Over all it is considered by most of the analyst that the investment for short term in short term could be risky business.
5. One more important factor in short term is that you have to be always in touch with the market and keep yourself updated about your stock. It’s like the rice is cooking and need attention all the time. You have to be alert all the time to book your profit or exit form that stock.
About Long term Investments –
1. A long term investment is done for a period of more then one year. The investments could be from one year to several years, no limitation.
2. It is being said by most of the top businessmen, investors and analyst that if you are expecting to have great money then you should invest your money for long term in stock market and may carry on for several years.
3. Generally returns expected in long tem are good which is called as safe investment and health returns.
4. One very important factor in long term investment is that there is no need to be in front of market everyday and get worried about daily markets volatility or stocks prices up and down. Its like invest in growth oriented stocks and keep it invested for several years without fear but it is important to keep watch on quarterly and annual results so that you will come to know whether your invested company is performing well or not and if in case you feel that it is not performing according to you or market then you can plan to sell and invest in other stocks.
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Article Source: UnArchived Articles
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