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It can be extremely costly to buy and hold stocks for the long term. The long term trend of the market is rising, but in a volatile stock market, the long-term gain is often responsible for risk, and not nearly as large as many short-term gains. Risk vs. return has increased significantly to an investor in stock market long term market. People say that the tax consequences are the reason for their operation. This argument lacks weight. It is very difficult for some people to break old habits and ways of thinking about the stock market. Modern stock market is very much different from old

A few years ago, market investors have learned to buy and hold for the long term was the correct course of action for investors because the long term trend of the market is rising. If you have taken another approach, you were a speculator at best and at worst a player. Brokers and managers of mutual funds were the most vocal proponents of this investment philosophy. The media has also joined the chorus and the concept has become part of the “accepted” market lore. Investor thinking in this regard, has lost its elasticity. What has been overlooked is that selling a stock which has entered a phase of increased risk effectively reduces the portfolio risk, it occurred a year or not. It is important for us to have clarity on major issues relating to the duration of the holding period of an investor.

The current market reality is that in a given year, stocks will often undergo multiple price fluctuations in which the magnitude of these fluctuations in the short term is often less than the magnitude of its price movements of 1 year. Even the titles that lose money if they are held for one year may be very profitable in several occasions during the year. Unless the long-term rate of gain is much larger than the average return on equity investments, there is a high risk gamble to keep a stock has moved up 20% in just 2 months, once the rate growth path began to show signs of collapse. The likelihood is that participation in such a stock in response to a 1 year long-term tax requirement will cost too much. When stocks move fast, it is common for them vigorously and suddenly “right” to decline once they begin to decompose. It’s like a packed auditorium in which someone shouted “Fire!” Everybody wants the same time. Potential buyers then become like those from outside the auditorium waiting to enter when they see everyone rushing in a panic, they naturally decide to wait and watch rather than go. Thus, while potential buyers wait, the stock plunged.

Most people aspire to a better tomorrow, but what happens if life takes an unwanted turn? We all know nothing is permanent in life, time changes and so do people. It is very important to carefully plan your future, keeping
your current finances in mind.

Either for business or personal needs- proper planning of our finances is very important as it has a long term effect on our financial status. In general terms financial planning comprises of a plan for income and expenditure in future.In financial terms an investment plan is useful for allocating money into
profitable assets which could yield benefits in the future. The assets could be both long term and short term like a new business, property, or even shares. Proper financial planning helps you see a bigger picture of your investments and help you invest in the right place at the right time. But planning for
your finances is not an easy job. A financial advisor is in position to give you the accurate guidance and help you or your business gain an edge.Your adviser can help you accurately identify your current financial status, prioritize your future goals and prepare a realistic plan to achieve them. Basically a good financial planning program would help you
lead a worry free and financially secure life. Keep in mind is that only appointing an advisor and leaving the rest to them is also not advisable.You should review the plan to see if it is reliable, realistic and proven.