notme wrote: Redbulls wrote:"We’ve long felt that the only value of stock forecasts is to make fortune tellers look good. Short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children."
Warren Buffett (1930–), US entrepreneur and financier
Source: Letter to shareholders (1992)
nobody can jump in to longterm trade not giving care of attention to short term market trends which make opportunities to buy sell or hold . thats my point .
If you ask me, your money and you are better rested when entered long term at the correct time when stocks fall to its 52wks low. It doesn't mean that you bought it cheapest, it can go more down, yet your entry is above avg than many others as the 52wks low has been considered a good entry.
Having said Long-term, I would not rule out Short-term in this event. You also, if you are a prudent investor, should look for possibilities in your long-term shares to have short term market volatility to gain some extra cash. Then buy back after the run is over.
Why consider investing?A key reason to invest is to stay ahead of rising inflation. Apart from that, some of life’s biggest goals, such as retirement, require longer-term planning. So begin it when u enter the workforce is ideal. When ur younger, the more productive u are, therefore, the more you earn, the more you can save.
What are the Investment types?Bond - Is a loan usually lend out to the Govt in SL, for an agreed interest rate paid regularly for a specified term.
Stock - A partial ownership of a company, tradable if the company is public and listed.
Mutual Fund - A mixture of many investment types that usually offered by portfolio managers. The risk-reward ratio may depend on the exposure it has to in their own profiles to various investment options. Usually will have options to chose from as per the taste of investor. i.e. High risk, mod risk, balanced, no risk, etc..
Ideally high risk comes from stock market investments and low risks or no risks from FD, bond like options.
There are lot more too such as FD, Real Estate, etc...