10 Commandments Of Long Term Investing (8 of 10) 10 Commandments Of Long Term Investing (10 of 10)

10 Commandments Of Long Term Investing (9 of 10)

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Commandment IX: Forget Trading, High Turnover Will Not Benefit You In The Long Run - Holding equities short term and trying to make profits via high turnover can be done, but it is extremely difficult and risky. While most of the market has moved in that direction, long-term investing, with a minimum of one year in a stock, is the preferred path to sustained growth. The losses on frequent trading due to taxes on every sale have the potential to crush short-term gains. Holding on, and positioning yourself in a company because you have faith in its underlying potential, is a much more certain course.