If you are interested in short term investments rather than long-term investments, then Long Term Investing is a much better option and Long term Trading is not really the best option. Since you are looking for small profits on a regular basis, you should go for investing rather than trading.
If you can invest a minimum time for doing research in an investment and when, then Short Term Investing is better choice for you and Long term Trading is not a good option. Research entirely includes researching financial statements of the company, recent price movements of financials, projections of future financial, market trends, etc. Investing is only possible when you have a sound understanding about the market as well as the economy. In case of long term investments, you may not get a chance to do all this research.
There are certain things that are required for making the right choices when it comes to Long term investments. Firstly, you should analyze the financial health of a company before choosing any one of its stock. This will help you to understand the strength of the business and the ability of it to make good returns for the investors.
Secondly, you should never consider an investment from a company that is not well known or a stock that has a poor performance in the stock market. You should also look for a company that is not facing any financial crisis, financial problems, or any legal problems.
Before deciding on long-term investing, you should decide what kind of return you want. If you are looking for a quick money or return, then short term investing would be your best option. However, if you are looking for a steady income or returns over long periods of time, then investing would be a good option.
If you are considering Long term investment, you need to be careful while selecting a company. You should always make sure that you are selecting a financially strong company that will not go under in a short span of time. After all, a long period of investment could be very risky.
Finally, if you are going for investing, you must choose a company that is trading in a highly liquid and volatile stock market. If you choose a company that is trading in a highly correlated market, you are definitely looking for short term gains and there is little chance for long term profit.
So, you see, while deciding on investing or trading, you have to keep all these factors in mind and you must choose a company and an investment that will provide you with consistent returns over a long period of time. If possible, find companies that are trading in highly correlated market like NYSE, London Stock Exchange, Pink Sheets, Chicago Stock Exchange, Australian Stock Exchange, etc.
With the above mentioned points in your mind, there is no need to look for long term investment in the stock trading. Investing would be the best option if you are looking for short term profits.
Therefore, you can say that investing is always the better option than short term investments. Although investing has many advantages but it also has some disadvantages. It is better to choose a company that is trading in a highly correlated market.
So, if you are looking for long term gains, you have to be very careful in choosing a company’s stock price. As I mentioned earlier, you need to analyze the financial health of the company before choosing any one of its stock. So, you can choose a stock with high earnings and low price. If the company is trading in highly correlated market, you need to avoid long-term investments in stocks that are trading in highly correlated market because, there are chances of losing all your money in the short term only.
As you can see, choosing between short-term investments and long term investments is not as easy as it sounds. You have to think carefully and you have to be wise before deciding and making an investment.