Short Term vs Long Term Investment - Tips & Guides

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No matter how much you know, there’s always somewhat new to learn. Here you can get free tips and information related to stock market and investments. 

How Do I Select Stocks for Short Term Investment?

Before I advance, let me clarify that I am not a SEBI Registered Investment Adviser. Therefore, I have my own limitations to sharing a set of information & knowledge with the readers of the blog. I only believe in investment, not in day trading. I have done MBA in finance and have worked in Stock Broker houses as an analyst for more than 6 years, I have never experienced a profit in day trading. That's why I only provide you suggestions on short-term investments mainly following the technical chart and fundamental analysis. I will mainly suggest you buy blue-chip stocks.

Please remember that real test of the short-term investment is when the market is on a downward trend. There is a common error that when markets are going down then for sure investor will be at a loss. It is true to a large extent but always keeps in mind that some of the stocks still ride against the tide. The index only comprises of handful stocks.

Short term trading opportunity always occurs even if the market is on a downward trend. Therefore, selecting of stocks for short-term trading is very important and should be such that stocks selected should ride against the tide at least for short period.

Is June Better for Investment?

I feel June is better for accumulating your favourite stocks. After few rough months, stocks are entering what are often two of the best months of the year for the market. A strong correction was seen in the stock offering appropriate level s to the investors to take a fresh position in the stock. Stocks are looking strong on the back of various technical indicators. On the weekly chart, the stock is trading above all near term and medium term moving averages offering further confidence to the upward momentum in the stock. If you are watching market at the end of the march, you can see that many stocks are available near to 52 weeks low. After a huge correction, we can expect that market will reverse in the positive gear very soon.

Is share trading gambling?

Word Gambling is the most complex you may think. Gambling comprises risking something of value on an unpredictable event in hopes of winning something of greater value. Nobody allows cheating in gambling. You cannot change the probability. For example, if you are tossing a coin to decide on an event, the chances are always 50/50. This cannot be changed.

On the other hand, investing in stock cannot guarantee a sure profit like gambling. But through proper studies and stock and market analysis, investors are able to shift the odds. Through proper planning and studies, you can always make money from the stock market. But if you blindly invest in a stock after inspired by its movement then it can be considered as gambling. However, trading in the stock market or investing in stocks for a long period of time cannot be considered as gambling.

Investment & Trading Types

    Long-Term Investment
    Short-Term Trading
    Intraday Trading

Buy mutual funds if you are thinking about long-term investment. The reason being retail investors are not good at booking profit at the correct time. I am sharing here an example with you; I bought a Stock at Rs 500 for the long term. It reached Rs 900 in one year. Wow, I should have booked profit but greed resisted me. Now after 1.5 years the stock is back to Rs. 500 again from 900.There are so many hidden factors that signal a Sell and retail investor is not able to detect these factors. The mutual funds are managed by fund managers so you don’t have to worry about when to buy or sell. Always remember the law of gravity, which goes up definitely comes down. If you want to make a profit then go for buying and selling stocks. Always buy stocks when the stock market is in panic and sell when the market is in good mood.

If you are a risk taker love to take some risk in investing money into the stock market you always opt short-term invest by taking a proper decision and proper planning.

Please Note: Investment in securities market is subject to market risk. I do not offer any profit sharing and guaranteed profit service. I do not accept an advisory fee in any other personal bank account.