When you have chosen to save on individual stocks, it probably gives you hope that long-term investment will develop better than the stock market’s average share. Short-term fluctuations are partly significant, but all historical data indicate that stocks in the long run provide a better return than risk-free available fixed income. So it will probably be in the future.
As a platform, there are many stock rules to follow
Following these conditions radically improves you get a good long-term return on the equity portfolio.
It is very difficult to capture the short term stock market because it fluctuates a lot and you take a risk by standing outside the market. To miss some good stock market days, will mean gains equivalent to one full year of bond giving lost. By buying quality shares that can be maintained for a long time.
Furthermore, tax on profits is ahead. In a long-term perspective of your investments, you must avoid psychological traps to panic and sell at temporary lows. You also save that transaction cost by holding down the turnover rate in the portfolio.
Persistence will at the same time not mean standing by their investments in any weather. On the contrary, it is often profitable to actively adjust equities to new realities.
Many people who enter the stock market
Are basically quite impatient and want to make quick profits. But that is to have realistic expectations. Many try to find the next few days, winning stocks, rather than focusing on the companies that have the opportunity to succeed in the long term. We agree that it is fun and exciting to try to make money quickly in the stock market. But it is also very risky and in many cases the result of short business is remarkably poor. The shares are therefore better for long-term savings than short-term speculation.
In many cases, it seems to go much better for many of those who have a long-term approach. One reason is simply that a high-intensity business leads to high transaction costs. In addition, it requires good discipline and good market experience to succeed as well as professionals and not suffer from the psychological pitfalls that can easily arise from a short-term behavior.
There are quite a few stock investors that are well managed by short-term business. But there are many investors who built a fortune through long-term behavior.