Wednesday, December 23, 2009

Long Term Investments versus Short Term Investments

There would be always a debate going on whether long term investments are best or short term investments are best. There will always a fifty percent people vote for long term investments and a equal percent of people would opt for short term investments.
Long term investments are investments held by a person for more than one year. Any thing less than that would be considered as short term. Long term investments can be held from one year to a decades. Short term investments can be held from one day to one year.
Even a single day would be enough for the you to get a return from it. Whether it is long term or short term, the utmost important factor is timing the market and picking the right security. Without this no investment would give you a good return.
I prefer long term investment over short term investment just because, even if you have missed the right time but you have chosen the right security, then still you are likely to end up in good investment.
In short term investments, you have to time the market properly. Otherwise, instead of profits, you may end up in loss. The risk is more in short term investments. The short term investments would not give you a second chance. But long term investments do.
Whether is long term or short term, time the market for profitable investments.
Happy investing.

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