Short-term Investments.
What are the advantages and disadvantages of the the two forms investment? Let us see.
The short term investments may be geared to the making of money where the potential to make money fast is very promising and may last for a few weeks to a few months.
The shot term investments allow more control over your money, in spite of fluctuations in the market.
This is because,you can keep a more watchful eye over your investment.
The other side of the picture is the possibility of circumstances developing that may affect the prospects of the yieds of the investment and may be risky.
The investments of a short duration are sensitive to unpredictable circumstances, mainly because of a volatile or unstable, unpredictable or chaotic market situations.
The chances of making a lot of money may be high but the probability of losing are also very likely to be high.
Long-term Investment In the case of the log-term investments, it is possible to still make money in the long run due to an expectation of sustained growth in the long run.
The fluctuations that occur in a short period are likely to be stabilized by gains in the long term.
You are actually allowing the losses and gains to be evened out in the long run.
One makes a short or long term investment depending on what one's goals are.
Want immediate gains, you make the short term investment.
On the other hand, if your goal is to invest for your future, no matter what the market trend is, Then the long term investment should be preferable.
For example,you can take out an insurance policy.
The risks are minimal.
Thus, investing in stock trading is a matter of deciding or opting for immediate gains,when one needs to make money in the shortest possible time.
This would demand a shrewd assessment of market conditions.
Where the short-term gains are not that very important, the option would be to have a long-term point of view, where the prospects of sustained income may be better,,no matter what the market trends are.
Here you allow the gains and losses to be balanced or evened out and short-term market trends are not of any importance.
A Successful investor has to be an intelligent, well informed Business man capable of learning quickly about the minute to Minute fluctuations in the market.
Granted that he wants short Time gains he should be capable of acting fast and also have some amount of willingness to put up with minor losses.
Author Resources The Author is a retired scientist from Government of India.
Current interests are: article writing and marketing.