Search

Business People Club

Search All Topics !

What are the Advantages Of Long Term Trading?

0 like 0 dislike
63 views
Posted by SleepyFledgling
What are the Advantages Of Long Term Trading?

Avast

Your comment

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Comment

0 like 0 dislike
commented by GreedyPig
Both short term and long term trading can be effective trading strategies, however, long term trading has several significant advantages. These include the effect of compounding, the opportunity to earn from dividends, reduction of the impact of price fluctuations, the ability to make corrections in a more timely manner, less time spent monitoring stocks.

1. Compounding

Time can be investor’s best friend because it gives compounding time to work its magic. Compounding is the mathematical process where interest on your money in turn earns interest and is added to your principal.

2. Dividends

Holding a stock to take advantage of payouts from dividends is another way to increase the value of an investment. Some companies offer the ability to reinvest dividends with additional share purchases thereby increasing the overall value of your investment. Additionally, dividends are more a reflection of a company’s overall business strategy and success than volatile price fluctuations based on market emotions.

3. Reduction Of The Impact Of Price Fluctuations

In the long term investment the persons is less affected by short term volatility. The market tends to address all factors that keep changing in the short term. So a person involved in long term investment or trading will not be affected as much by short term instability due to factors such as liquidity, fancy of a particular sector or stock which may make the price of a stock over or undervalued. In the long term, good stocks which may have been affected due to some other factors (in the short term) will give better than average returns.

Long-term investors, particularly those who invest in a diversified portfolio, can ride out down markets without dramatically affecting his or her ability to reach their goals.

4. Making Corrections

It is highly likely that you could achieve a constant return over a long period. The reality is that there will be times when your investments earn less and other times when you make a lot of money in short term. There may also be times when you lose money in short term but as you are in quality stocks and have long perspective of investment you will earn good returns over a period of time.

There are always times when some stocks do not perform and it is the wise choice to pull out of an investment. With a long term perspective based on quality stocks, it is easier to make decisions to change in a more timely manner without the urgency that accompanies short term and day trading strategies chasing volatile changes.

5. Less Time Spent Monitoring Stocks

Unlike day trading that can require constant monitoring of stocks throughout the day to capitalize on intraday volatility, long term trading can be carried out effectively using a weekly monitoring system. This approach is most often far less stressful than watching prices constantly on a daily basis.

Overall, investors that begin early and stay in the market have a much better chance of riding out the bad times and capitalizing on the periods when the market is rising.

Related posts

0 like 0 dislike
1 Comment 117 views
What are the Advantages of Low Interest Credit Cards?

What are the Advantages of Low Interest Credit Cards?

Posted by MysteryWasp
0 like 0 dislike
1 Comment 59 views
What are the Advantages of a Home Equity Loan?

What are the Advantages of a Home Equity Loan?

Posted by OpinionOwl
0 like 0 dislike
1 Comment 100 views
What are the advantages of joining a forum?

What are the advantages of joining a forum?

Posted by DreamBaby
0 like 0 dislike
1 Comment 66 views
What are the advantages of writing eBooks?

What are the advantages of writing eBooks?

Posted by Sassassin
0 like 0 dislike
1 Comment 70 views
What are the advantages of outsourcing?

What are the advantages of outsourcing?

Posted by BumblingBee
0 like 0 dislike
1 Comment 103 views
What are the advantages of switching credit cards?

What are the advantages of switching credit cards?

Posted by LoyalChief
0 like 0 dislike
1 Comment 80 views
What are the advantages of Barcoding and Barcode scanners?

What are the advantages of Barcoding and Barcode scanners?

Posted by AfternoonFay
0 like 0 dislike
1 Comment 131 views
What are the advantages of low credit interest credit cards?

Why should i get low interest credit cards?

Posted by MammothMoth
0 like 0 dislike
1 Comment 72 views
What are the alternatives to bankruptcy?

How to avoid bankruptcy? What are the alternatives ?

Posted by TrainedGuy
0 like 0 dislike
1 Comment 56 views
What are the day trading tips?

Any tips on day trading?

Posted by BunBunny
0 like 0 dislike
0 comments 136 views
What are the Benefits of Business Loan?

Finance is always a main issue, when it comes to start a new business. You can have various innovative ideas and plans, but you ... a new business loan, to avoid any sort of perplexity in future.

image
Posted by VoyageHooper
0 like 0 dislike
1 Comment 135 views
What are the Legal Obligations of The CAN-SPAM Act?

What are the Legal Obligations of The CAN-SPAM Act?

Posted by nicejone
0 like 0 dislike
1 Comment 80 views
What are the Benefits of Ordering Promotional Products Online?

What are the Benefits of Ordering Promotional Products Online?

Posted by Madept
0 like 0 dislike
1 Comment 73 views
What are the Benefits of promoting your business with promotional magnets?

What are the Benefits of promoting your business with promotional magnets?

Posted by Octopuppy
0 like 0 dislike
1 Comment 67 views
What are the Benefits of Submitting to a Directory Website?

What are the Benefits of Submitting to a Directory Website?

Posted by GiftedWrecker
0 like 0 dislike
1 Comment 59 views
What are the pillars of home based business?

What are the pillars of home based business?

Posted by VirtualAssassin
0 like 0 dislike
1 Comment 57 views
What are the benefits of expired domains?

What are the benefits of expired domains?

Posted by PlushSeal
0 like 0 dislike
1 Comment 72 views
What are the benefits of creating podcasts for my business?

Should i create podcasts for my business?

Posted by Madept
0 like 0 dislike
0 comments 109 views
Advertising and Internet: a Long term relationship

Entrepreneurs these days work hard to take their business to the next level. Now, they are frequently using Internet as an important ... to create a positive notion for the product in youngsters mind.

Posted by Octopuppy
0 like 0 dislike
1 Comment 92 views
How Can I Get Out Of Debt?

How Can I Get Out Of Debt?

Posted by Oystrich
0 like 0 dislike
0 comments 175 views
What is Bad Credit Mortgage Loan?

If you wish to purchase a new home or refinance your existing mortgage to get cash-out, but are worried as to whether ... save yourself time and keep unnecessary inquiries off of your credit report.

Posted by Falconjurer
0 like 0 dislike
1 Comment 58 views
What to Know Before Submitting Instant Approval Card Applications?

What to Know Before Submitting Instant Approval Card Applications?

Posted by Prepatriarch
0 like 0 dislike
1 Comment 56 views
What to look for in a credit repair company online?

What to look for in a credit repair company online?

Posted by Madept
0 like 0 dislike
0 comments 57 views
Cost-Reducing Tips for the Small-Business Owner

One of the keys to running a successful small business or home office is learning to control costs. Even the smallest expenses can ... a postage meter or get a mail scale to eliminate overpaying.

Posted by HuggingDuck
0 like 0 dislike
0 comments 99 views
The Right Financing For Your Business

One of the biggest challenges for business owners in the USA and in Canada is finding and securing the right type of financing ... , be sure to consider invoice factoring as your financial solution.

image
Posted by Tomatoad
0 like 0 dislike
1 Comment 104 views
How in the World Do People Save Money?

How in the World Do People Save Money?

Posted by PlushSeal
0 like 0 dislike
0 comments 80 views
The Value of Drop Shipping: How Much Are You Saving?

by Stuart Lisonbee Now let's compare the length of time we would spend on an auction if we were to use Doba. Because we are allowed to ... is of value to me. It's also less stress, and less hassle.

Posted by GamerAlpaca
0 like 0 dislike
1 Comment 96 views
What are the crazy money making ideas?

What are the crazy money making ideas?

Posted by KeyboardPie
0 like 0 dislike
1 Comment 114 views
What are the business opportunities ideas for the stay at home mom?

What are the business opportunities ideas for the stay at home mom?

Posted by GardenParrot
0 like 0 dislike
1 Comment 89 views
What are the Effective Niche Marketing Strategies?

What are the Effective Niche Marketing Strategies?

Posted by Herogue
0 like 0 dislike
2 comments 169 views
What are the Exit Strategies for Businesses?

How to get out of the business if its not working?

Posted by Octopuppy
0 like 0 dislike
0 comments 452 views
What are the free tools for your website?

It does not have to be expensive to get started with Internet marketing. There are so many free tools available, including HTML editors, ... Go Daddy or Host Gator for about $15 per month or cheaper.

Posted by KeyboardPie
0 like 0 dislike
1 Comment 66 views
What are the Effective Ways To Make Money In Your Blog?

What are the Effective Ways To Make Money In Your Blog?

Posted by MammothMoth
0 like 0 dislike
0 comments 90 views
What are the business start up costs?

If you are considering starting your own business, then you have no doubt considered the investment required for various business start-up ... sites that can help you get your business up and running!

image
Posted by AfternoonFay
0 like 0 dislike
1 Comment 56 views
What are the ecommerce problems ?

What are the ecommerce problems ?

Posted by Conjursa
0 like 0 dislike
1 Comment 127 views
What are the penalties for failure to pay employment taxes?

What are the penalties for failure to pay employment taxes?

Posted by Tomatoad
0 like 0 dislike
1 Comment 70 views
What are the business entities?

What are the business entities?

Posted by GreedyPig
0 like 0 dislike
1 Comment 59 views
What are the Niche Marketing Misconceptions?

What are the Niche Marketing Misconceptions?

Posted by Octopuppy
0 like 0 dislike
1 Comment 61 views
What are the Ideas for Boosting Sales?

What are the Ideas for Boosting Sales?

Posted by MysteryWasp
0 like 0 dislike
1 Comment 73 views
What are the sales boosting strategies?

What are the sales boosting strategies?

Posted by Butcherry
0 like 0 dislike
1 Comment 82 views
What are the marketing mistakes to avoid when promoting your business?

What are the marketing mistakes to avoid when promoting your business?

Posted by nicejone
0 like 0 dislike
1 Comment 47 views
What are the low cost home based businesses?

What are the low cost home based businesses?

Posted by Prepatriarch
0 like 0 dislike
1 Comment 86 views
What are the Online Advertising Channels For My Business?

What are the Online Advertising Channels For My Business?

Posted by HuggingDuck
0 like 0 dislike
1 Comment 72 views
What are the steps to advertise for free?

What are the steps to advertise for free?

Posted by Hawkward
0 like 0 dislike
1 Comment 67 views
What are the differences between shared and dedicated hosting?

Should i host my site with shared hosting or dedicated hosting?

Posted by HairyFoal

online business.png

Connect with us:
...