What is the meaning of Short Term Trading or investing?
Share trading done from one week to couple of months is called short term.
Basically technical analysis is used for short term trading. But as it there is no any fixed criteria for trading some traders even do short term trading based on news, Company’s announcements of quarterly results, news of merger and acquisitions etc
Midterm Investing
Share trading done from one month to couple of months, say six months to one year or two years is called midterm trading.
Fundamental analyses, Company’s announcements of quarterly results, are the basic parameters used for midterm trading or investing. Some technical analysis even makes use of technical charts and indicators for midterm trading.
Long term Investing
Investment for couple of years is called long term investing.
Long term investment may continue from one year to 10 years or even more.
Long term analysis is purely based on fundamental analysis of the company.
But it doesn’t mean that once you do the fundamental analysis and invest for 5 years and forget it.
Note: The financial quarterly results or half yearly results of the company should be revived and monitored how the company is performing.
