Long-term investors can better handle market ups and downs. Short-term traders often panic during volatility, risking capital erosion. In contrast, long-term investors have time for investments to recover.
Long-term investing means diversifying your portfolio across different assets like stocks, bonds, and real estate. This spreads risk and prevents major losses in one area.
Long-term investing, where you buy and hold investments, typically performs better than trying to time the market. Even renowned investors like Warren Buffett endorse this patient strategy.