Long terms is term very often used by Market analyst or traders. In my opinion, this is myth that long term always pay. Some trader says i have invested for long terms, how much is long term and how much is target or returns expected.
Just imagine you have started trading/investing in 2011 (considering 10 year horizon 2011-2021), let us take 3 years, 5 years and 10 years horizon for some stocks, i have chosen Tata motors, Bharti Airtel, GAIL, BHEL, ITC (I have chosen well known stocks in 2011). You can study others based on same. Just look at these below, the observations are:-
So in nut shell, there is no equation of returns with respect to time. You need to study and plan your trade well. Define your trading style and rules and just follow those. Trader tend to buy those stocks which are having less value in absolute terms or keep buying or averaging those stocks which are continuously falling. Always trade what you see, not what you think. Emotions has no value in market trading. If your returns are less then or equal to Fixed Deposit, then its loss for the trader. Even if its same return, it is time loss for trader.
In past charts , things are very easy to see that i should have exited at these levels or i should have bought at these levels, but when it comes to live market, its the real and practical knowledge which will make your decision based on your backtested trade plan wrt your trading style.
happy trading 🙂