Long-term investing and short-term trading serve different goals, and which is better depends largely on an individual’s time horizon, risk tolerance, and involvement level. Long-term investing focuses on buying quality assets and holding them for years to benefit from compounding, business growth, and market appreciation, typically involving lower transaction costs and less daily stress. In contrast, short-term trading aims to profit from frequent price movements over days, weeks, or even minutes, requiring constant market monitoring, technical analysis skills, and a higher tolerance for volatility and potential losses. While long-term investing is generally considered more suitable for most people due to its simplicity and historically consistent returns, short-term trading can be appealing to experienced investors who have the time, discipline, and expertise to manage higher risks. Ultimately, neither approach is universally better—the right choice depends on personal financial goals, knowledge, and commitment.
