What are the disadvantages of short term investing?

[Suba]

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.

 

[nomad]

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.

 

[Suba]

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.

 

[Bisolami]

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.

The only disadvantage is that you may lose your money because most short-term Investments are always very risky and you tend to lose your money to them. Also, you may not even make much profit

 

[Suba]

The only disadvantage is that you may lose your money because most short-term Investments are always very risky and you tend to lose your money to them. Also, you may not even make much profit

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.

 

[Bisolami]

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.

This is true and I think one of the best ways of reducing the risk is by investing the amount of money that you can afford to lose so that you won't feel bad when anything happens.

 

[Suba]

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.

 

[Bisolami]

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.

The investor needs to know if he wants the short term investment or that of long term and then he will now plan on what amount if money he wants to use to do the investment.

 

[Hate2Wait]

The main disadvantage would be it won't get the complete team to control the market forces like we see in Long term

 

[Suba]

The investor needs to know if he wants the short term investment or that of long term and then he will now plan on what amount if money he wants to use to do the investment.

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.

 

[Hate2Wait]

Its better to have a diversified portfolio so that we have investment in both Short and long term securities

 

[Suba]

Its better to have a diversified portfolio so that we have investment in both Short and long term securities

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.

 

[Hate2Wait]

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

 

[cherry123]

I like short-term investments as one can easily do this one. it is often considered by a lot of people since one will quickly get fast returns on it now

 

[Bisolami]

The main disadvantage would be it won't get the complete team to control the market forces like we see in Long term

You are right and that is why I think it is better to go for long-term investment and it will be good for you as long as you are cool with the interest that you will make on the platform

 

[cherry123]

if one can it is better to have a diversified portfolio. it is not always better to just have one sided investment. it will be better to have investment both ways

 

[Passiveearner]

if one can it is better to have a diversified portfolio. it is not always better to just have one sided investment. it will be better to have investment both ways

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.

 

[cherry123]

The thing is that any investment is likely to come with losses whether short-term investments or not so yeah it might not always lead to losses but you can still lose .

 

[Bisolami]

if one can it is better to have a diversified portfolio. it is not always better to just have one sided investment. it will be better to have investment both ways

It is not very advisable to have just one investment but there are times when it is only that investment you are capable of doing because you do not have so much money

 

[eldavis]

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.