Long Term Investing is the buying of stocks and observing them over a longer period of
time. This time period can be six months to a year, or somewhere between five and ten years. It
is one of the most risky strategies, but more likely to produce the aspired positive return. Time
can be this type of investor’s best friend or it can be its worst enemy. It can either be that
waiting the perfect amount of time to sell right before a price drop and profiting, or waiting just a
little too long and losing a good amount of money. It is important for this type of trader to
understand that the health of the stock cannot be determined in a day to day basis, but over a
longer time period. If the stock has been on a steady declining slope for longer than a year, it is
an unhealthy stock and needs to be sold. If the stock is on a steady incline, it is going to be a
very profitable situation for investors. And more frequently than not, the stock will fluctuate up
and down throughout the investment period. Optimally, as the market fluctuates, the stock is
gradually increasing and investors are profiting.