Long-Term Investment with Trading – Is It Possible?

Long-Term Investment

Obviously, this is a rhetorical question for professional or well-versed traders. In fact, one of the first ways trading was made available to us was via forms of long-term investments that helped us build our pension funds, for example.

Nowadays, however, more and more people see trading as short-term investments and are prepared to exit their trade at the moment it only starts to show signs of going down. Naturally, this is one of the main reasons why trading, overall, is seeing so much hate online. 

Let’s take a closer look at the long-term investment possibilities that trading provides us with.

Crypto Trading

Believe it or not, trading cryptocurrency can be a form of long-term investment, especially if we invest in certain crypto shortly after they appeared on the market. However, this also comes with risks, as certain crypto can vanish off the face of the earth overnight.

Long-term investment in crypto implies having a proper strategy, studying the market, and making sure that you invest in the right company. As some of you might know, investing in crypto means investing in the goals of the company that creates it. 

Stock Trading

All companies out there that have stocks on the stock market are ideal for long-term investment. But only a few of them are known as blue-chip companies that are simply perfect for long-term investments, in the true sense of the word.

Another option would be investing in the S&P 500 Index, as it has shown a consistent increase of 10% per decade since it was established. Stock trading is, by far, one of the best options when it comes to this type of investment. 

Overall, when it comes to stocks, it’s ideal to look at the battle of the giants. As such, when investing in stocks in the long-term, it would be ideal to choose between Alibaba and Amazon, Microsoft and Apple, or Facebook and any other social media that threatens its position. 

Robo-Advisors

Even though this method is still, basically, day trading, it can also be used as a long-term investment option. Obviously, while it might be easy to understand, using a robot advisor is hard to master (hence not many people have heard of this particular method).

For example, this review on Roboforex shows us that the broker is offering a variety of trading instruments to its clients. Most of those instruments are unfit for long-term investment. But, if you rely on a robo-advisor, they can do just that.

Essentially, with a Robo-advisor, you invest a certain sum and then the advisor engages in automated daily trades, based on your settings. If set up correctly to manage wins and losses, this trading technique needs little to no human control

Commodities

Last but not least, we do have to mention the market of commodities, mainly because it includes precious metals. As we all know, gold is the one trading instrument that is believed to be a safe haven and that will never crash.

In short, people have and will always invest in gold – even if it’s to make quick money or gather enough for a retirement fund. The same applies to all of the other precious metals. But this is not everything.

The market of commodities also includes natural gas and corn, soybean, and so on. Taking a look at the uncertainty of the food market caused by the pandemic, it’s safe to say that investing in food as commodities, in the long run, could be beneficial to our trading portfolio. 

 The Bottom Line

Overall, long-term investment with trading is not impossible, but it does require a certain level of skill and knowledge on the part of the trader for it to be successful.

For example, taking a look at the crypto graphs of the past couple of months, we can be certain that most crypto holders gave in and sold most of what they owned – and they did so during a crash that didn’t seem to end. 

However, those that bought crypto 6 months to 1 year ago were still on the profit side. Now crypto started rising again, which is also great news for those that have decided to make it a long-term investment for their portfolio. 

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