4. Stock Market Investment Methods
4.1. Long-Term Investment
Of the different stock market investment strategies, long-term investment
is probably the least complex. To invest using the long-term strategy, one usually
does extensive research on one or more companies in which they want to invest.
The goal of long-term investment is simple: find a company worth investing in
that you believe will steadily produce a profit over several months or years time.
This can be done by investing in a fairly infantile company that is destined to
have a bright future or can be done by investing in companies that specialize in
seasonal goods, for example, bathing suits or snow shovels. The most basic
attraction to long-term investment is that it does not require significant attention.
One who invests for the long-term is not interested in the current state of the
market or its projected path for the next few weeks; anyone investing for the
long-term is looking for the overall trend of the stock for the entire period of
investment. Saying that long-term investment requires minimal involvement
does not mean that there are not significant risks. Long-term investment can still
be a shaky endeavor and often investors can start to lose money rather quickly.
Long-term investment is always a gamble and, in reality, the only way to profit is
to do in-depth research on the company or companies and to accept that despite
dips in the price, hopefully, the stock’s overall performance will net a gain in the
end.