Does Long Term Investing Work?

With penny stock trading it often better to stick with short term investing rather than holding stocks for years. The longer you hold it, the more risky it might be as there could be negative information released. The law of motion is that whatever goes up has to come down. This can be applied to penny stocks. It is often your best bet to take a profit and run rather than wait for more. Many people held stocks for the long term and had their accounts wiped out in the crash a few years ago.

 

The worst financial meltdown since the 1930s happened a few years ago. In 2009 many long term investors lost most of their investments. Their 401ks were practically wiped out. The days of investing your money in large blue caps and holding them for years are over! Those who invested in large caps watched their accounts shrink to nothing.

Buy and hold can be an excuse for sitting on your mistakes and that's how many investors have lost. Trading doesn't have to be about making hundreds of transactions. Many investors can build sizable amounts of wealth by jumping on just a few penny stocks a year. You will be very hard pressed to find a stock trading at $75 advance to $300 in just a couple of weeks, but you will more likely see a penny stock go from $.75 to $3.00 in that time!