7 Compelling Reasons Why Long Term Investing Is Better Than Short Term Trading

by Silicon Valley Blogger on 2008-05-12  

The case against short term trading.

Over the years, I’ve learned to gravitate towards long term investing as I gained more education and experience with investing. This is the strategy that involves building a diversified portfolio and following an asset allocation that is in tune with your risk tolerance. It involves a commitment to keeping a portfolio invested in the markets, regardless of market behavior. Like many finance enthusiasts out there, this is my preferred manner of investing, and here’s why:

7 Reasons To Invest For The Long Term

#1 It’s easy enough for anyone to do.

#2 The power of compounding is your friend.

#3 Passive investments are convenient.

#4 By staying invested, you avoid making costly mistakes.

#5 A long term view lowers your risk.

#6 A long term view gives you time to fix your investment mistakes.

#7 Your rate of return is boosted by stock dividends.

Read more here: http://www.thedigeratilife.com/blog/index.php/2008/05/12/7-compelling-reasons-why-long-term-investing-is-better-than-short-term-trading/


Range of S&P 500 returns, 1926-2005