214k views
3 votes
What is the different between short term trading profitable vs lon term trading

1 Answer

3 votes

Final answer:

Short-term trading involves buying and selling within a short period, aiming to profit from price fluctuations. Long-term trading involves holding onto investments for a longer period and benefiting from overall growth.

Step-by-step explanation:

The difference between short-term trading and long-term trading lies in the time frame of the investment and the associated risks and returns.

Short-term trading, also known as day trading or swing trading, involves buying and selling financial instruments within a relatively short period, usually within a few days or weeks. Traders in short-term trading aim to profit from short-term price fluctuations and take advantage of market inefficiencies.

On the other hand, long-term trading involves holding onto investments for a longer period, typically several months to years. Long-term investors focus on fundamental analysis and aim to benefit from the overall growth of an investment over time.

User LeZuse
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.