Short term or long term – which on is better for you to invest?

 Short term or long term – which on is better for you to invest?

You can earn money in two ways. Because you buy cheap, and sell expensive. And, you win the difference. Because you receive dividends from the companies you have bought. But, how to determine which process to choose, and how to choose? Do you want to know why the rich earn more money with their investments? Do you want to know what they do that you don’t do?Then take your first step with Trade angel broking.

There are no safe formulas on how to earn millions in the stock market, but what you must be sure of is that you must follow a series of guidelines, establish and plan, considering what part you will allocate in the different financial assets offered by the market to diversify risks.

Long-term investment

The funds are the winning horse in the face of the individual investor by the intrinsic features they offer. In general, a transfer of capital towards this class of assets is evident, generated by the environment in which you find yourself, characterized by very low returns on bank deposits. Investment funds constitute an interesting formula for profiting savings through different financial assets with different levels of risk, susceptible to providing a satisfactory return on investment.

Profitability – It is an investment that is characterized by being collectively, so economies of scale are used by managing important assets incurring lower operating costs compared to individual investment.

Tranquility – They are managed with the knowledge and experience of professionals, knowledgeable about financial markets.

Liquidity – They have a high degree of liquidity, and offer the possibility of repaying shares at any time, partially or totally disposing of the investment within a period of 48 to 72 hours.

Taxation – They enjoy great tax advantages, since they allow the payment of taxes to be deferred until the client decides to reimburse their money. In addition, the client can transfer his assets from one fund to another without any fiscal impact.

Short term investment

This method or system allows to obtain high yields in both the national, and other global markets traded by buying shares, contracts for difference, financial options, financial futures, swaps, warrants, certificates, etc.  The possibilities of the investor’s strategy to invest in the stock market are very varied –

  • Speculative operations.
  • Arbitration operations.
  • Intraday operations.
  • Peer trading strategy.

Which term is better?

This market is characterized by being tremendously liquid. Investors who do not wish to make trading characterized by a more conservative and less risky profile, are those who want to invest in long – term products. It could be differentiated according to the purpose of the investment between investors and speculators. It depends on whether the primary objective is to generate returns or capital preservation. In this sense the situation of high volatility can be exploited by those short – term speculators who want to make trading. For those long-term investors, this situation should not be a problem either because it is a small insignificant pothole for extended periods of time.

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