advantages and disadvantages of long term investment?
Answers
Answer:
advantages ::
Long-term investing tends to be easy enough for people who do not have the time to monitor their investments on a weekly or daily basis
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In comparison to financial habits like trading, investing is easier. Short-term trading can prove to be a time commitment and requires more of a skill set than long-term investing.
Those who succeed at trading often tend to be a minority within a large pool of traders. So when it comes to asset allocation, long-term investing tends to be a safer bet.
disadvantages::
If you have the potential to be a good day trader or swing trader, investing can be one of the slowest ways to make money by comparison.
Investing tends to reuse the same capital relatively infrequently in comparison to trading, and so the annual returns tend to be lower than those seen by a professional trader.
Investors can also struggle to outperform the market. This can make returns harder than directly investing in the stock market, in certain cases. Most professional fund managers tend not to beat market returns for their clients after costs.