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Time
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| Your investment time horizon is the length of time that you wish your return goal to be realized, and your investments liquidated. If you dont need to liquidate your investments for several years, you can accept more short-term risk since over a period of years average returns should even out. If your time horizon is short term, your investments should have little price risk since asset prices can fluctuate substantially. Generally investors in stocks should have a time horizon measured in years. If you wish to invest in stocks with a shorter term time horizon you will need to spend more time with your investments and trade both long and short positions to reduce your stock market risk. |