Understanding Your Investment Goals

Before diving into long-term versus short-term investing, it’s crucial to define your financial objectives. What are you saving for? A down payment on a house? Retirement? Your child’s education? The timeline associated with these goals will heavily influence the investment strategy that’s right for you. A short-term goal, like buying a car in a year, demands a different approach than saving for retirement decades away. Identifying your goals helps determine your risk tolerance and investment horizon.

Time Horizon: The Key Differentiator

The most significant difference between long-term and short-term investing lies in the time horizon. Long-term