Written by Joey Frenette at The Motley Fool Canada
Canadian investors shouldn’t speculate on the hot stock of the day with the hope that they’ll be sitting on a massive gain next week, next month, or even next year. Indeed, by chasing momentum and neglecting the valuation process, you could be setting yourself up for short-term pain with none of the long-term gains.
Indeed, trading stocks can make you big bucks in a hurry, but it can also cause you to lose your shirt in record time. And unless you’ve been in the trading game for many years, the odds will probably be stacked against you.
Instead of trying to maximize gains in a near-term timespan, consider broadening your horizons. If you’re young and can invest for the next three to five (or even +10 years), you can put the odds right back in your favour. And you don’t need a master’s degree in finance or anything of the like.
