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Long Term vs Short Term Investing Risks

Investing in the short term simply means you’ll likely take higher risks.

If you want to really make money with your short term investments you’ll have to master a lot of technical trading skills, and I can tell you it’s not easy at all.

So if you have no experience in using technical analysis you should avoid making short term investments.

My profitable investing experience is that the stock market will always keep going up in value– over the long term.

So if you’re looking for the easiest and most profitable way to make your money work for you, you may want to look for long term investments ONLY.

For example you can invest in value stocks, an ETF, or some kinds of income stocks.

If you have no idea about these types of investments don’t worry because I am planning on posting a follow up to this explaining the different investments, and how you can make them.

The final key point to take away is that both stock markets and individual stocks, share the same characteristics. Over time they go up.

So no matter if you invest in the whole stock market index or invest in a particular company, you can apply the same strategy to grow your money.

One more useful tip if you’re new to investing, is that you can apply the 90/10 rule to get started.

How this rule works is simple.

You can invest 90 percent of your money in long term investments to make sure that your money will be safe. While investinh the remaining 10 percent in short term investments to test the water.

This way it’s much safer because if you fail you’ll only lose a small amount of money.

You have nothing to worry about but everything to gain.

By applying the same strategy that I’ve shared YOU can easily turn your small investment, of even just $300 a month, into a million dollars in thirty five years.

It’s a lot of money for no extra effort just save some money and invest it.

With an average return of 10 percent you can easily turn your $300 dollar investments into a million dollars in 35 years.

However if you can double your return say you can make a return of 20 percent per year for the same number of years…

And for the same amount of money invested, you can build a net worth of over 11 million dollars.

That also means that you can easily multiply your net worth by 10 just by doubling your compound return to an achievable 20 percent a year.

Investing is exciting right!

Once you have a real strategy you can consistently multiply your money and that’s why knowing how to invest can change your life forever.

It is very easy to make a 10 percent return a year.

All you need is patience.

You just need to have enough patience to wait for your money to grow.

However if you want to double your return to 20 percent, besides being patient you’ll need real education and a lot of hard work.

When it comes to investing Honestly you can’t succeed overnight and there will be no shortcut to be successful as an investor.

You must first invest in your education.

You’ll need to learn real strategies.

Put those strategies into practice and start letting your money work hard for you.

Comment ( 1 )

  1. Yes there are much more risks if you invest for short term gains. Long term things seem to follow quite a smooth upward trajectory overall. Short term there is turmoil and much money to be lost.

    Also don’t invest money if that is all you have and you may need it back soon, because if you need it back at a time when the market is down you may have to take your paper losses,. While normally you could hold and the stock will usually correct itself again before you sell.

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