NVDA
NVIDIA
-- 124.920 TSLA
Tesla
-- 292.980 PLTR
Palantir
-- 84.920 BBAI
BigBear.ai Holdings
-- 5.160 AMD
Advanced Micro Devices
-- 99.860 
Long-term investment VS short-term investment
After chatting with a friend, I was inspired.
Share my views on long-term investment and short-term investment:
Friends with extensive investment experience should have heard: In the long run, long-term investment usually yields better returns than short-term investment. The main reason for this belief is that price trends appear more stable and less volatile on long-term charts compared to short-term ones, making short-term investment more prone to losses.
In fact, viewing short-term charts as accelerated long-term charts, except for differences in leverage, the success rates of all trading strategies in long and short-term charts are similar. With the same trading strategy, short-term trading offers more trading opportunities, while long-term trading provides higher leverage. In reality, the final returns are quite similar.
The key is to use the correct and effective trading strategy”。
Some friends might ask, why am I so enthusiastic about using short-term strategies? The reason is "compounding". To help beginner friends understand, let me give you an example:
Assuming under the same trading strategy, the annual return rate for long-term investments is 12%, with an average monthly return rate of 1%. For short-term investments, the monthly return rate is also 1%, but it is continuous for 12 months. As a result, the actual annual return rate for short-term investments is not 12% anymore, but 1.01^12 = 1.1268, which is a return rate of 12.68%.
Let me repeat once again, the most important thing is to have the right trading method.
The stock market will reward your hard work, but only if you are doing useful work. Otherwise, you will be hurting yourself! That's why it is recommended for beginners to engage in long-term investments in stable stocks before establishing their own trading strategies, because it involves less risk.
Wishing everyone successful trades!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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