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Long-Term Investing vs. Short-Term Trading

Level 4 · Learn It

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Long-term investing means holding shares for years, so short daily wiggles matter less. Short-term trading means buying and selling quickly, and day trading means within a single day.

Short-term trading is much riskier: costs add up, prices jump around, and emotions like fear and excitement push people into rushed choices. Most people who try it do not do well.

News moves markets, but positive news does not guarantee a rising price — the price already reflects what people expected. Good investors ask questions instead of chasing promises.

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