Short Term or Long Term

Before you open an account and start buying penny stocks you need to think about what type of investing style best suits you. Short term investors have a different mindset and use different skills than long term investors. Most investors stick with one strategy but will cross over when an exciting opportunity arises.

Let’s examine the differences between the two.

 

Short Term
Because investors find it easier to predict short term moves based on exposure campaigns and the use of technical analysis a majority of successful traders fall into this category. They become skilled at moving in and out of trades quickly and locking in profits. The biggest mistake rookie investors make is getting in too late and holding too long.

Everyone looking to become a short term trader should start by learning our Trading Strategies.

 

While we prefer trading OTC stocks on a short term basis, not everyone is built to be a trader. Some people enjoy the challenge of trying to finding the next Google, Microsoft or Exxon and are willing to place long term bets based on their research and the company’s success.

 

Long Term
People making long term investments in OTC stocks need to become super sleuths. Becoming a successful investor requires far more research than being a short term trader. Fact is, a company’s fundamentals can actually cloud the judgement necessary to be a successful trader, whereas they mean everything to the long term investor.

There are 10,000 companies that trade on the OTC markets, for those that are willing to dig deep there are diamonds in the rough to be found.

If you are interested in being a long term investor start by saving our Super Sleuth Due Diligence Checklist to use as a reference.

 

Next Steps
If you plan on being a short term trader read Trading Strategies.

If you plan to be a long term investor exclusively, make sure you’ve saved our Super Sleuth Due Diligence Checklist; and get started finding a broker.