Is the stock good in the long term or short term?

Long-term trading and short-term trading are two common and completely different trading styles in the stock market. Usually, long-term transactions highlight a "static" word, so as to keep constant and change. Short-term trading highlights the word "move", which is flexible and changeable, and you can run with one shot. Which method is better, we think it is difficult to compare the advantages and disadvantages. As long as you feel suitable for yourself and use it skillfully, it is a good method.

First of all, how are long-term and short-term defined? We usually refer to holding shares for more than one year as long-term trading, holding shares for less than three months as short-term trading and holding shares for more than three months and less than one year as mid-line trading. Among them, short-term trading is special. In fact, many short-term investors do not hold shares for more than one month, or even only do overnight trading for a few days.

Secondly, what kind of people are more suitable for long-term work. Judging from people's own conditions, calm and calm people are more suitable for long-term work. They often have enough patience, regardless of temporary gains and losses, and pursue long-term and stable returns. Moreover, these people should have some experience in stock trading. They have full confidence in their trading methods and the stocks they hold, and will not be easily influenced by market sentiment. In addition, they have less financial pressure and objectively meet the conditions of long-term stable shareholding.

So, what kind of people are more suitable for short-term work? Usually, short-term traders lack patience and often expect to make significant gains in a short time. As long as the stock price is unsatisfactory for a period of time, they will choose to sell and find new goals. Many small retail investors are short-term traders and often like to chase up and down with the fluctuation of stock price, but the result is not ideal. In fact, short-term trading has higher requirements for investors. You need to have a high professional knowledge reserve, have a good understanding of most stocks, have keen observation and judgment, and have enough time to study and summarize the market.

Third, from the different characteristics of stocks. Those stocks with good fundamentals and steady trend are often more suitable for long-term operation. They don't need you to spend too much time marking the market every day, and often you can get good returns as long as you hold them long enough, but you should also be careful of those traditional white horse stocks whose performance suddenly changes face. Short-term stocks do not require high fundamentals, and often focus on themes and concepts. The trend of stock price fluctuates greatly, and there are often ups and downs.

In addition, judging from the stage of the whole stock market, whether it is suitable for short-term or long-term operation, it is not static. If the whole market is depressed and in a pessimistic mood, it is not so wise to insist on long-term thinking at this time. If the market sentiment is hot, if short-term traders can be more patient at this time, it may be better than frequent stock exchange.

Based on the above reasons, we believe that investors should first fully consider their own conditions, stock characteristics and market environment, whether they are doing long-term or offline. A method that is suitable for you objectively and can be used flexibly subjectively is a good method.