Struggling with short-term and long-term investment, which one is more conducive to profit? Recently, with the intensification of market fluctuations, more and more people have begun to have doubts about this issue. The market conditions in recent months have made investors more inclined to short-term operations.
The reason for this tendency, I think, can be attributed to one word-"greed". Investors are eager to make profits in every market fluctuation and hope to grasp every penny. Just like the stock market in recent months, the rise from December last year to March this year, followed by a wave of corrections to May, and then another rise, and another correction in early August. Such market conditions have made many investors start to think that if they can accurately grasp every rise and correction, then even if the market fluctuates, the account can continue to make profits.
However, is this really the case? The answer is no. Once investors form a short-term mindset, they will become anxious, afraid of the market correction, and worried about profit taking. For example, when the stock price rises by 5 or 10 points, as long as there is a little correction, they will start to get nervous and worry that the previous profits will disappear. This mentality makes it impossible for them to stick to long-term investment, but choose to sell early.
Such a change in thinking will cause investors to miss out on greater returns that could have been obtained. Because in the initial stage, they may choose long-term investment, which can persist and eventually get rich returns. But once their thinking changes to short-term operations, they will frequently look at the market, and they will not be able to resist selling as long as they have a little profit. Even if they make one or two operations in a short period of time, this inertial thinking will eventually lead to them missing out on the real big market.
When the big market comes but they miss out, they will fall into endless waiting, watching the market rise, and eventually they will buy high because they can't stand it, and they will be stuck at a high position. This short-sighted behavior not only makes investors miss long-term investment opportunities, but also may cause them to frequently lose money in the market. Therefore, investors should clarify their investment goals, stick to their investment strategies, and not be disturbed by short-term market fluctuations in order to achieve real profits.
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