The differences between long-term and short-term investing

[Jojo]

Long-term investing involves buying and holding investments for an extended period, typically five years or more, with the goal of achieving capital appreciation and building wealth over time. This approach allows investors to ride out market fluctuations and benefit from the power of compounding returns. In contrast, short-term investing, or trading, focuses on capitalizing on short-term price movements to generate quick profits. While short-term trading can be lucrative for experienced investors, it requires active monitoring of the market and carries higher transaction costs and tax implications. Ultimately, the choice between long-term and short-term investing depends on your financial goals, risk tolerance, and investment horizon.