Invest in Stocks for Long Term

Invest in Stocks for Long Term

The investor who stays in for the long term is more likely to achieve his or her goals than the investor who chases “hot tips” for quick profits in the stock market.

i. Power of compounding:

Long term investments eventually leads to increase in wealth as these investments are consistent, give good returns, has the power of compounding and a long term approach

ii. Hedged from short term volatility:

 Long term investments gives you time to cover your losses of the short term. The long term investor is protected by the short term volatility of the market and therefore can cover losses of the short term investment

iii. Lends stability to your portfolio:

 The slow-but-steady pace of long-term investments allow for a much greater degree of stability and a much lower risk than short-term investments