Short-Term Investments VS Long-Term Investments !

in #bitcoin7 years ago (edited)

I am writing this post for the people who would like to know the difference and benefits of the two main types of investing , as you can see below are two short descriptions on both ways.

                       Short-Term Investments

The main advantage of short-term investments is their growth potential in a short period of time. This time period can be days, weeks, or months. Short-term investing can give you more control over your money as you buy and then sell within a short time period.
Short-term investments also come with disadvantages as well. A volatile stock market can make a dramatic change to a short-term, trendy stock. These types of stocks are affected by unpredictable circumstances due to the short time period. In addition to the possibility of making a good amount of profit in a short period of time, alternately, investing in short-term stocks can also lend to losing a great deal of money in a short period of time. So be aware that the risk goes both ways.

                       Long-Term Investments

Long term investments generally show a steady growth pace over a long period of time. This lends to long term stock investments being a more stable and less risky investment than the short-term stock.
There is the risk of having less control over your money due to the long period of time it takes for the stock to mature. Another disadvantage to long-term stock investing is how long it will take to see any profits. If you are in need of money immediately, long-term stock investments may not be the route for you.
It is also important to note that investments require fees to be paid for trading and keeping your stocks. Due to the slow profit progression of long-term stocks and the fees associated with playing the stock market, your long-term stock can seem to experience a down time before it actually becomes productive and shows profit gain.

I hope this post helps answers some of your questions , let me know what you think ?

REFERENCE ONLY : PLEASE FIND MORE INFO HERE http://financialplanningtips.net/the-pros-and-cons-of-short-term-and-long-term-investments/

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