Like when we encounter a dilemma, our first reaction to two options that can affect our pocket we always stop several moments to meditate and remeditar our decision for quite some time. And it is that when you scratch your pocket, do not allow it without at least have thought of the consequences at least a couple of times.
Investment in the short or long term is one of the most recurrent dilemmas of ancient and modern investor, while it is true that currently the markets are opting for the medium term, as more secure format, you can always be circumstances or patterns that recur in short-term investments and so are long-term investments. Examples of the possibilities of possible short-term investments and long may be the property as we discussed recently.
What we have to keep in mind when we invest in the short term we have to take into consideration that the instruments we choose have to be very volatile, they do not suffer major changes throughout its daily assessment in order to protect the purchasing power of our money.
We must not fall into the error of the immediacy of money, big investors always say it is better to raise money through savings and over time, that quickly. It is not something that has a lot of science, and many argue that getting rich is simple long-term and extremely difficult and risky, however, when we act in the short term.
Such investments are very recurrent in the famous actions of a dollar or “pink sheets” that so famous and rich Jordan Belfort made better known as “The Wolf of Wall Street”. The short term is followed by such actions due to little real backing having that company with respect to its market value, very dangerous for those ruthless brokers without ethical sense that promise in gold and the moro-based ” rumors “. If you’ve seen the movie “the reporter” I shall know what kind of practice I mean: the Pump and Dump
Although these practices also occur in the long run, if it is true that they are less frequent because the truth comes to light sooner or later. You can not feed a rumor and its upward trend for long without being accountable to investors.
While short-term investing you have to find values or indicators that will indicate stability, when you invest in the long term you can afford to incorporate into your sampler of some that may be more volatile investments. We always have to have these considerations facing our action plan where both the goals we have set as the deadline than we have to show for it. This is vitally important as we will mark the performance and nalysis. It all depends on these factors we have to establish before disbursing any euro.
The choice between the short and the long term is given by the context of our objectives. As mentioned above, it is very important to define the term depending on the amount of risk we can, want or are willing to take in our portfolio, according to term what we need to accomplish our goals. Making a plan is something you have to do before trying to invest, plan to save and then invest when you reach a goal, and this is exactly what we have to do once we have passed this requirement and we achieved our goal saving. Back to develop a roadmap, this time with your investment as the protagonist, always making clear the timing and objectives.