Long term v short term

Discussion in 'Learn how to trade or invest by asking questions' started by Saul Williamson, Nov 21, 2016.

  1. Saul Williamson

    Saul Williamson New Member

    Hi there,
    I'm wondering what differentiates a short and a long term stock?
    What would be a stock that I was going to put money and leave it there for the long term? would it be a less volatile stock? A larger more established company/stock as opposed to a new start up?

    I want to put money into a long term stock and forget about it, but I also want to trade short to medium stocks. I just can't understand what to look for.

    Help is most appreciated.
     
  2. rynev33

    rynev33 Member weekly contest winner

  3. Acstudio

    Acstudio Well-Known Member won penny contest 44x won weekly contest 40x won weekly contest 41x simulator winner 20x

    Stick to the most heavily traded and most liquid equities. Look for depth of market (bids and asks at and around the price, options with liquidity). Volatility tends to be mean reverting and will change over time. So you can spread risk around different Implied Volatility Rank but... volatility is volatile...means it can change. I ignore dividends (except as they apply to in the money call options) as they are priced into the stock. If you want to reduce cost basis and be more strategic learn about "covered calls" for starters.
     
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