A Choice That Will Determine Your Success, Trading or Investment?

Strengthening and weakening stock prices is actually a natural thing. The risks faced are also relatively larger.

High risk but potential returns are also greater. This is in accordance with the basic principles of investment "High Risk, High Return".

The presence of fluctuations in the stock market makes us should be more careful.We can not eliminate the risk of investing, but we can learn & reduce risk.

To minimize the risk in stock investing, tips for beginners in choosing to invest should choose a long time.

Long-term stock investment should be more than 5 years, and not just 1 or 2 years.


Historically, long-term investments in good underlying stocks provide a positive return.

However, if viewed in a shorter time period such as one year, stock prices tend to fluctuate or up and down (labile).


This is why long-term investments are less risky than short-term trading.

Investments in shares should be tailored to personal financial goals. What does it mean?

If we use this investment for a period of 5-10 years later, then stock investment can be an alternative.

However, if these investment funds will be used for sudden expense needs, for example in the next two years the funds will be spent.

Or know for financial purposes in other short term, this stock investment strategy is less suitable.

Instead of investing in just a year or two, and your goal to invest in a short time frame, it's best to trade in a 1-week timeframe.

Trading or buying stocks in the short run takes advantage of price trends.

Differences with investments that focus on buying a company. Trading takes advantage of price fluctuations.

For medium term trading tau buy and hold, choose stock that trend is going up.

Other tips, if you are still a beginner in stock investing, it's good to diversify.

Diversification of investments is good as long as it is not excessive. Diversification in question is to choose some investment instruments

For example, you are investing in stocks and mutual funds, or bonds.

Diversification in stock investments can also be done by buying shares.

But the best, for long-term investment, do not choose more than 3 shares. Why? Because, if too diversified, then you can not focus and make profit can not be maximized.

Hopefully useful, and you are more successful with your current investment.