The decision on the investment term depends on many factors, including personal preference, risk tolerance, and the amount of starting capital. Short-term investing involves quickly trading stocks, commodities, or currencies to make an immediate profit. In contrast, long-term investing involves holding assets for a long period of time, hoping for gradual capital growth.
A short-term approach can be beneficial if the investor has a good understanding of market dynamics and is prepared to react quickly to changes. However, this approach comes with a higher risk of loss, since the price of an asset can fall sharply in a short period of time.
Long-term investing is considered more reliable and is suitable for those who are looking to provide themselves with passive income in retirement or increase the value of their own capital. Typically, such investors choose shares of large corporations or bonds with high reliability ratings.