Long Term Or Short Term Investment ?

Discussion in 'Stock Market' started by cynusalisa, Apr 11, 2012.

  1. cynusalisa
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    cynusalisa BANNED

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    Hello Friends,

    I am Here to discuss about The difference between Long term Investments and Short Term Investments?

    I want to Invest my Money On shares But I am confused Between Long term Investment Or short Term Investment........Suggest me Guys Which type of investment is profitable for me and Why?

    __________________________

    get More Share Market Advice from sirfpaisa.php
     
  2. ThinkCritically
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    ThinkCritically Open to opinion

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    There are two secrets to successful investing. 1. don't ever tell everything you know 2.
     
  3. ThinkCritically
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    ThinkCritically Open to opinion

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    no seriously though. What exactly are you asking? You do realize that you have opened up with such a vague open ended OP.

    I'm an economics major so I could use some practice at explaining this stuff.

    Long term investments are meant to be held on to for a longer duration, while short term investments are meant to be held on to for a shorter amount of time. Long term investments are things like houses and they tend to be less liquid (you can't convert your house for dollars over night). Short term investments should be highly liquid, like stocks, bonds etc.

    You want to be a long term investor since you don't follow the market closely every day. Short term investing is really for more experienced investors.
     
  4. Douger
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    Arable land. The rest is bullshit, although I do dabble in commodities.....that come from ? Arable land.
     
  5. inALIENable
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    If you're going to invest in the stock market at this time, at least invest in those businesses that will be the most resilient to inflation, those that might profit from inflation. Best bet however would be to invest in yourself. Get educated in your field of occupation. Invest in your own business. Buy a coin operated car wash or laundry. Precious metals, jewels? Hey, the world can always use another microbrewery, LOL.
     
  6. usmcstinger
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    usmcstinger Silver Member

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    My suggestion is to learn as much as possible about investing in stocks, bonds and mutual funds.You do not need a person or firm to make investments for you. You can invest through mutual fund supermarkets. They will also provide you with the ability to invest in stocks, bonds, ETFs and Closed End Mutual Funds.

    You should decide what your goals and time tables are before start investing. Good places to start: MorningStar, Bloomberg, Market Watch, Smart Money. Good Luck.
     
  7. 1_Old_Man
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    Short Term: Let's say there is a pharmacudical company that you expect will be given permission to market a new wonder drug next friday, but the world hasn't stumbled onto this fact just yet and so the price of the stock is still low. You might buy that stock today with the expectation that on friday the price will skyrocket, and if it does you will sell it off on monday morning and take your money. It doesn't get much shorter term that than.

    Long Term: Let's say that you have been using some companies' products for a couple of years and have come to the conclusion that they are very well managed. When you look carefully at the company you discover that they have decided to increase their internal budget for product research and continue to release new and innovative products for years to come. So you buy the stock with the expectation that its value will continue to grow at a healthy rate so long as they continue their aggressive strategy. You have no intention of selling this stock next monday no matter how much it fluctuates on the daily market because you expect it to double or triple in value in the next several years. So you hold. This is a long term investment.

    Another way to think about it is from an economists point of view. For an economist the short term is that period of time in which the variables will remain unchanged. The long term, by contrast, is that period of time in which any or all variables might change. So with a short term investment you are 'betting' that the current situation is very favorable for rapid price increase, like the company that is on the verge of having a new product approved. Long term investments in this case would be made in those companies that you expect will deal with the uncertainty of change very well, will release new products or services that are as yet unknown, and most importantly have management systems in place that allow them to change with a changing world.
     
    Last edited: Apr 17, 2012
  8. Toro
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    Piss off, spammer.
     

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