Long Term or Short Term Investment is better in Stock Market
What you think is better in Stock Market? Should one go for only Long Term investment or indulge in short term trading?
As per me one should always prefer Long term investment plans. Almost all investors who made money from stock markets are Long term investors.
The most noteable long term investor of world is Warren Buffet he once said "We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'"
The another noteable long term investor is from India - Rakesh Jhunjhanwala. He have does short term investments or trading but mostly refrain form it.
Whats your opinion?
My vote too goes for Long term investments. It was 2007 when i initial got in touch with stock market and was really fascinated.
And i made my mind to go for long term but could not resist the temptation of earning high money and often sold the investments within 1 to 4 months.
The opportunities i lost from doing short term trading was huge. I still remeber some stock in which i invested and sold for a negligible profit, but letter these stock multiplied 5-10 time.
Some of the stocks i remember are:
20 Microns: Bought at 29 sold at 35, it went to 130 within no time.
Hanung Toys: Bought at 69 sold at 72, the stock jumbed upto 450 in very short period.
Gitanjali Gems: Bought at around 50-60 and sold around 70, it crossed 400 within a short time.
Aban Offshore: Bought around 250 and sold for 400, crossed 1600 within a short time.
And many other stocks. The lesson i learn were:
- Short term trading requires your attention for 24 hours a day.
- You make wealth in long run.
- Long run profits are due to wise investment, short term profits are because of trail and error tactics.