Long term /Short term investment

Now what are these long-term investment and short-term investments ?

There are some people who do not have the ability to stay for a long time, those who cannot wait for a long time to earn money, those investors are called short term investors. Everyone has a different perspective of looking at the stock market, everyone has their own strategy of stock market. On the contrary, those people who have the ability to wait too long, who leave by investing money because they have full confidence in their knowledge and prediction.

It is not that the short term investor does not have the knowledge of the stock market, but for them the stock market is a game of a few days, whatever they have to do but do not stop trading. Everyone has a different perspective of looking at the stock market, and has their own strategy of stock market. If someone says that he does only short term or long term, then he is showing his point of view that he may look at this company or this stock from that point of view.

As we say, every person's point of view of the stock market is different, similarly a smart trader knows where to go for short term and where to go for long term trading. Let us tell you some strengths and weaknesses, which will make it easier for you to do short term investment and long term investment by yourself and by this you can identify yourself what you are made for

Long term investment:

We can also call long term investment in simple language as Retirement Plan. When Retirement is concern then there is another way like stock market which is called Mutual Fund and if having a good job then Provident Fund which will give you good return and good value for your money.

The first thing that comes to mind is whether we can stay for so many years or not, if we talk for a long period, then its duration is considered more than one year. Now there is potential in the company, so some companies grow very quickly and there are some which show their growth very slow.

Now the one whose growth is going to be for a long period of time, there will be no profit by selling it, for him, stopping will be the only option. Talking about the long term in the stock market, if you still have a lot of years left in your retirement and you leave some of your money by investing in a good fundamental company, then you can earn very good profit on that investment. There is term called dividend which will fulfil your requirement as there is good dividend yield for fundamental stocks.

Short term investment:

Now let's talk about short term, then know that the investment which has to stay for one year or less is called short term investment. A lot of people believe in short term investment because it doesn't take patient you can cut the deal even in three months, it rests on you and it may happen that they find it risky.

Most of the short term investors believe in technical analysis more than fundamental analysis, those who have very good knowledge of charts and they believe in chart analysis. If you know chart analysis well, then there is no doubt that you too can get out of making your profit in a very easy way by investing short term.

Now if we talk about analysis, it is not that we have to do short term investment, then we will invest only on the basis of chart analysis and only technical analysis. To invest, you should have a thorough analysis of that company. On the basis of short term profit, you can also fulfill some goals of your life, whatever you wish.