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Short-term vs. Long-term Investing: Balancing Risk and Reward When Choosing Investment Time Horizons

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Introduction Investing can be an excellent way to build wealth over time. However, with so many investment options available, it can be challenging to determine the best approach to achieve your financial goals. One of the most critical decisions is determining your investment time horizon: short-term or long-term.   The investment time horizon refers to the length of time an investor plans to hold an investment. Short-term investing typically refers to investments held for one year or less, while long-term investing refers to investments held for more than a year. Both approaches have their pros and cons, and it's essential to understand them to make an informed investment decision.   Short-term Investing   Short-term investing involves buying and selling securities or assets over a short period, often less than a year. This approach is usually preferred by investors who want to make quick profits, capitalize on market fluctuations, or achieve specific financial goals