1. People with a large amount of idle funds
This is of course the primary condition. Trading in the long term is not as frequent as in the short term, and the error rate is relatively low. Without a considerable amount of idle funds, it may be difficult to truly exert oneself in the stock market.
2. People who don't have a lot of time to monitor the market
Long term traders, due to their limited free time and energy, do not have much time to pay attention to changes in the stock market. When they think about paying attention to stock market trends and making trading decisions, they may have already missed a relatively good opportunity. Therefore, this type of person should make long-term investments and hold stocks for a long time after selecting them.
Due to the limited time spent monitoring the market, the sensitivity to both the overall market and individual stock trends is relatively low. If there is a lack of sensitivity to stock market signals or people who cannot correctly grasp signals and take appropriate measures, then long-term investment should be considered.
Due to the fact that long-term investors have ample time to make judgments and rely less on intuition and courage, they do not have high requirements for being able to make decisions quickly. If the decision-making ability is weak, but investors with certain financial knowledge and long-term vision are very suitable for long-term investment.
4. People with patience, confidence, and perseverance
Going with the flow is a big taboo in everything we do. As a long-term investor, we must have the ability to analyze and think independently, and not be easily influenced by others' opinions. The more important thing in long-term trading is to have patience. When holding stocks for a long time, do not sell them out of impulse.