For almost all types of investments, the longer you can hold the investment, the more valuable it becomes. Long-term investments tend to perform better because they account for short-term fluctuations.
Long-term investments tend to carry less volatility than short-term ones. Even stocks that may have volatile movements on a daily basis can produce stable returns in the long run. Additionally, you earn a tax advantage for holding stocks for at least one full year.
Day trading, when people buy and sell stocks within a day’s volatility or short period of time, can be extremely lucrative. When a stock rapidly gains momentum, the price can rise in a short amount of time.
For those who can afford it, buying and running a rental property can provide you with a great return. If you’re looking to invest in apartment buildings, you may want to team up with a partner or invest through a real estate syndication arrangement.