Many Who are planning for investing their hard earned  money  in to stock  , always confront with dilemma  Whether  to invest in the market for longer duration , let say period of more than 3 years , or invest in market  for period not  less than 2-3 months  to 3 years . In both the situation the investors are gullible they are not aware when, where, how much to invest, for that is all covered in   under different articles  , but for now let start with the  subject of this article –

  Long term   investing vs.  Short term investing In Stock Market

• When you are investing for long term your time horizon is more than 3 years , it can  be for as long many year you want to keep the stock, while short term investor keep the stock up to 1-3 months to 2-3 years .
• Long term investing is for wealth building over a period of time, let say you invested in property that grew over time, but exception here is stock you are going to invest can corrode your wealth also,  While short term investing is like doing some business or job  for earning over  period  of time , exception stock can deplete.

• Long term investor does the fundamental analysis of the stock for longer periods(you can find more articles about that on our blog), for performance of stock in last 5 years , while the short term investor  does rely on fundamental analysis for shorter durations and technical analysis , is that most short term traders,  swing traders and day traders follow.

• For long term investing you keep margin of safety I e. if you  go wrong you are going to lose that much amount of money let say 1 percent after anticipating the fair value of stock  , while short term investor keep their stop losses , rely on support and resistances for saving their capital   

• Long term investor does fundamental analysis on yearly basis of companies balance sheet , profit & loss account  , look prospective of share for 5 years , While short term trading can done on relying of result of single quarter of a good company , combining with technical analysis.

• For long term investing can be done part time, while short term investing can also be done part time or full time.

Which type of investing you follow depends upon your attitude, purpose of investment, but both requires you   to be updated on timely basis of companies events, news, macro happenings in the industry.  Short term investing requires you to be more informative rather than its counterpart since chances of loss are more because of market fluctuations.

Also doesn’t follow any advisor or broker that can be misleading, learning technical analysis , fundamental analysis  from books yourself or learn  from  experts , then dive  in the river.  Otherwise you will going to ruin your hard earned money.

For more insight in – visit- https://thelastclose.blogspot.com

The investor are in confusion, in to which medium they invest their hard earned money also being novice , since market is a butcher , that never forgive mistakes , and you have will face loss for every mistake you will commit . Then how to make investment wisely, such that there earned money is put to work in best, efficient manner and yield good returns is challenging. Let start the two mediums comparing them in which you as entrant can start and you earn more.

Investing in stocks 

• Investing in stock you are free to select your stock in which industry and sector you want to invest , ie metal and mineral, transportation, banking  and technology etc

• While stock are concerned you define your own portfolio , let say you have an investment objective of 1 lac   you divide it in to 8-10 stocks of 15,000- 10000 each , u reduce your risk of investing in a single stock, or you can invest in either single stock as per your wish, though it is not advisable  .
• It is requires   proper technical analysis and fundamental analysis on your part and timely evaluating your portfolio on daily basis or weekly basis for some time.
• However if you are not expert you will investment randomly there are chances of huge losses.
• If you work   on basis of advisor chances are you end up losing, if you do not find an expert advisor.
• If you become an expert of industry then you can earn good returns from market.

Investing in mutual fund –

• Mutual fund are managed by professional  fund managers , who have expertise in this area , and they  are heavily paid  by mutual fund companies for handling investment
• They handle may thousand or hundred corers of pooled wealth of investor
• They diversify their investment in different portfolios , in different sector
• The chances of losses in mutual fund in less as compared  to equity investments yourself
• However they charge fees as little as .01 to 2 percent of investment for their management from investor annually.

It is in the mind set of people that investing in stock if you are learned investor or taking advises gives better return ,but that requires your time and learning the market thoroughly ie fundamental analysis and technical analysis.

 However we found investing in equity mutual fund can also give you same return or if you invest in mixed mutual fund   that have equity and bond also in their portfolio will give you stable return more than deposits of banks, that you will find more details in our articles further.

if you think you have learned  the art of investing than invest yourself , be your on fund manager,  there are many in market, earn as much you can on investment because market can make your money  100 percent to 200 percent with your proper delegation  , or it will just remain 20 percent.

Otherwise  go for Mutual funds .

For more insight in – visit- https://thelastclose.blogspot.com