Currently, investment has become the choice of many people's passive income streams, in addition to increasing their income as well as practicing discipline so that their lives can be more economical, one type of investment that is their choice is short-term investments such as money market mutual funds and fixed income mutual funds. deposits, bonds. P2P lending etc. Short-term investments are often made a priority investment choice because it will quickly get returns. After the investment period ends, the funds can be used for other purposes, such as tuition fees at universities. Minimal risk and easy to learn short term investment.
What are the disadvantages of short term investing?
- Thread starter Suba
- Start date
Some people believe short term investment is risk free as you take your profits and then move on. However, for other people short term investment does not yield a lot of profits especially when the assets had higher chances of going up.
- Thread starter
- #3
This means that investors will lose moments when the trend is up, so their profits are not maximized. That is why short-term investments need to always monitor price fluctuations, so investors don't lose information and opportunities.
- Thread starter
- #5
Even though short-term investments are riskier than long-term investments, if we diligently monitor the investment portfolio, we will be able to reduce the risk of loss because we can act quickly to cut losses.
- Thread starter
- #7
Short-term investments are not as easy as long-term investments, we must have the skills to analyze and monitor investment instruments because investment values fluctuate. An investor must also be able to decide when to buy and sell short-term investment instruments.
- Thread starter
- #10
I agree with you that every investor has different financial conditions and needs, especially short-term needs, so investors must be smart about how much money to invest for the short term and how much money to invest for the long term.
- Thread starter
- #12
It is a must for every investor to make a diversified portfolio portion in percentage, for example for the short term 60% being for the long term 40%, and of course each investor has a different portion depending on their financial condition.
That's right and this way we can enjoy different benefits from a diversified portfolio and can manage risks
I do not think that short-term investments always lead to losses. They could be profitable if you know how to make money. Short-term investments might also include short-term investments in the Forex markets.
In most cases one common disadvantage of short term investments is that anything can go wrong at anytime. You could end up loosing all your investments especially if you are investing in something which the price value is not stable, like crypto currency.
