✔️ Information reviewed and updated in December 2023 by Eduardo López
The term of the trading or investments that we will make is very important. There are basically 3 terms: Short, medium and long, the first two being the most popular. But why not look at long-term trading? Here we will tell you what are the advantages of betting on this type of trading.
➡Advantage 1: Psychology
The first thing you should know is that long-term trading offers a great psychological advantage. And it is that here, patience is your main virtue, Since, the longer you wait, you can obtain more benefits as additional dividends, reducing the risk. This is where you outperform short-term traders.
➡Advantage 2: More analysis
In a short-term operation you must make quick decisions, on the other hand, in long-term investment you have more time available to analyze data. This will allow you to make better decisions when investing, all without so much pressure.
➡Advantage 3: Reduce volatility
Volatility is one of the biggest risks when investing, for example, in cryptocurrencies. The shorter the investment, the greater volatility, so investing in the long term will help you minimize this risk.
➡Advantage 4: Stronger trends
The longer the time, the stronger the trend will be Therefore, operating long-term investments will allow you to operate in much more solid trends. In this way you will be able to obtain many more benefits such as minimizing volatility or making better estimates.
➡Advantage 5: Free time
Nobody wants to spend all day in front of the computer waiting for the change in trend and making investments quickly. Trading long-term will give you the comfort of knowing that your investments are running while you can take advantage of your free time for other things. like exercising or hanging out with your friends.
➡Advantage 6: Less stress
Trading in the short term is undoubtedly very stressful because the changes are very fast, so fast that they could overtake you. If you don't want stress in your life, then you should turn to long-term operations as they tend to be calmer.
➡Advantage 7: More reliable data
As with trends, the longer term, greater certainty and robustness in data, graphs and information. If you want information that is truly conclusive, then you should bet on the longest terms, since they will have better breadth in their data.
✨ When is it convenient to operate in the long term?
For those who are inexperienced or beginners, long-term trading may seem exasperating, but it is certainly a good option. This is because it reduces risk and gives you more time to analyze your decisions.
We also recommend investing long-term with certain assets that, in the short term, do not have such a marked variation in price. This strategy generally works well for uncertain markets and for assets that tend to gain value over time, such as certain stocks or metals.