If you intend to fight inflation, you should have some backup plans that go beyond your regular employment and monthly salary. If you want to see your money grow, you should have a long-term investment plan in place. Stocks, in particular, are ideal for long term investment plans. However, if you are still sceptical about this, you should read the following points to get complete clarity about why you should consider stocks for your investment strategy.
No Emotional Stress
When you are investing in stocks or EIS shares, you are depending on the company’s progress to get your benefits at the end of your term investment. You do not have to keep checking the market rise and fall every single time beyond the particular company shares that you have invested in. Further, with a long-term investment strategy, rise and fall in current market trends are not going to affect the final payback you receive from your shares in the future. This completely removes the emotional stress that usually comes from high-risk investment strategies.
Higher Chance Of Higher Value
Stocks can rise and fall as the market changes, however, a stock cannot fall beyond £0 and it can keep gaining momentum infinitely. Therefore, if you have invested in the right stocks and shares and you see that they are having a rocky performance right now, all you have to do is persevere. You can wait for the stock to regain its value and cash it in at its highest. This is why long term strategy has a higher chance of giving you higher returns on our investments.
Compound Profit
If you are investing in stocks, you can generate dividends or profits for as long as your money is invested. You can also choose to cash in your money at some point and reinvest in new EIS shares or stock portfolios. This will help you compound your profits along the way of your long-term investment strategy. In comparison to fixed deposits in the bank where the outcome is a simple interest calculation at the end of the investment term, stocks give you more ROI.
Rectifying Your Strategy Along The Way
When you start investing in stocks and shares, you do not have to be bound by any rules beyond your own. For fixed deposit accounts, the investment cannot be withdrawn for a set amount of time. However, in the case of long term investments in stocks, if you find there is ever a turn where the stock value has risen astronomically you can cash in for profit. You can then reinvest the profit in buying new shares of some other lucrative company. This helps to mitigate the risks of the investment and in your total investment term, you get maximum profit return margin.
All of these points must have made abundantly clear why the long term strategy of investing in stocks is the best idea. If you have not yet considered it, you should start without losing any more time.
