Monday 20 June 2011

Long Term Investment

Investments for Short, medium and long term is very essential and fruitful if you are patient enough to hold them till for the right span of time. Although short term and intraday trading does provide good and handsome returns but its not everyone`s cup of tea. If you want to get advantage of the fluctuations of the Indian Stocks Markets even though if you can not actively trade on daily basis in it, then investor is the word for you. Investors generally buy stock in anticipation of a rise in the price and sell when they find good returns. If you are ready to invest money for a future event, such as retirement or a child’s college education, you have several options. You do not have to invest in risky stocks or ventures. You can easily invest your money in ways that are very safe, which will show a decent return over a long period of time.
The important thing is to do your research on before investing your money for long term gain. Now the question arises of where to get good share tips and independent financial advice.The internet is a source of huge amount of investment information and advice. “Don’t put all of your eggs in one basket!” You’ve probably heard that over and over again throughout your life…and when it comes to investing, it is very true. Diversification is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should too!
Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market accounts, or even in some real property. The key is to invest in several different areas – not just one.

Long-term" may mean a long period of time, as for a bond (e.g. 10 or more years) or for a buy and hold investment strategy.The long-term investments account differs largely from the short-term investments account in that the short-term investments will most likely be sold, whereas the long-term investments may never be sold. A common form of this type of investing occurs when company A invests largely in company B and gains significant influence over company B without having a majority of the voting shares. In this case, the purchase price would be shown as a long-term investment. Short term investment may mean a trade that lasts minutes, hours, days, weeks, or months. Traders with smaller capital in account may make decisions based upon very small gains or losses. Short-term trading requires a defined strategy and the discipline to execute it.  The idea of stock tips for long, medium or short term  requires the ability to predict stock price direction.

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