Long Term Investment-A Good Idea

Being an active trader can be a great thing. You often make money faster than the “buy and hold” crowd, and perhaps more importantly, you can make money when they can’t.
Even so, there are downsides to being a trader instead of an investor. What’s the difference? Generally, a trader is someone who tries to profit from short term price fluctuations. He goes for a quick turn around. The nature of whatever he’s buying or selling isn’t necessarily important, only that it can be sold for a profit. Investors, on the other hand, have a different mindset. They’re concerned with putting their money into quality vehicles which will grow over time.
So what are the bad parts about being an investor?
One of the hard parts about investing is that it’s necessarily a long-term deal. Whenever you look to park your money in something that’s going to grow and create value, that doesn’t usually happen over night. And because it’s a long term deal, you can’t pull the plug when things don’t go your way in the short term. Unlike traders who can quickly ditch a stock if the price starts to move against them, investors stick around regardless of price if the fundamentals are still in place.

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