What came first? The egg or the hen? While this remains the most debatable topic in the history of mankind, another controversy that closely rivals this mystery is the question, which one is better? Short-term trading or long-term trading? Predicting or speculating the stock market is one aspect while formulating your trading strategy that holds paramount importance accounts as the major contributing factor behind gains or losses. Inadequate knowledge or comprehension of the market is considered the key element behind the frequent losses incurred by novices; however, by solidifying the foundations of basic trading strategies, one can overturn the trading game.

Ultimately, it all comes down to the question: are long-term gains secure and beneficial over the greed held by the short-term trading strategy? While every professional would have their fair share of opinions to share, which are based on their trading objectives and perception of the market, there is no specific ultimatum that separates one strategy from the other. Circled with their own merits and complexities, both strategies can help an investor greet their financial objectives provided they leverage and stand affix on one strategy.

Key Differences:

Opening a demat account for trade invest and making a profit is the only objective for many traders. However, the solutions lie in the details of the outcome that a trader projects within a given period. The extent of goals, the deduced time horizon, and the capacity to handle the risk are some elements that constitute or pave the way for a trader to incline toward either long-term or short-term trading. Below are some differences and variables that set these strategies apart.

1.  The Risk Taking Capacity:

Are you prone to act upon sudden market changes or upon experiencing sudden volatility in your invested stock? Do you find yourself biting your nails impatiently while the Nifty 50 rises and falls in a short time frame? If you find yourself answering in the affirmative, short-term trading can be your forte; that would help you set a predetermined stop loss and uncover your risk-taking abilities. However, if you believe in the virtue of patience, irrespective of the resistance or reaction of the market, then long-term trading by using investment apps is the avenue you can excel in. 

2. Time Period:

Are your investments time-bound? Are you looking to invest in the share market by using stock investing app for short-term gains? Or would you be completely unbothered with your investments for a few years, provided it attracts valuable gains in the long run? The answer to all these questions would help you analyze your trading strategy, elevating your trading game and helping you perceive a clear picture of the market.

3. What Is Your Thirst?

In the above points, we reflected on risk; however, your time and money are invested in the Nifty stock market to derive profits. What is the amount you envision as an outcome of your trading decisions? The sum you come up with would help you discern the type of trading strategy you would need to adapt. Analyzing your risk and reward objectives is pertinent, be it dividends, stock splits, bonuses, or profits acquired from the rise or fall of a share price.

Conclusion:

While the major distinction between these trading strategies is the reliance on technical and fundamental analysis of a stock, the above factors are integral in determining the type of trading that would suit your needs when you use a share market investment app.