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Medium Term Investment

It is important that one knows and defines what sort of investor one is.  A long term investor must deploy long term strategies that fit his investing style.  Similarly, a short term investor will use short term tactics.

The medium term investors combine the short and long term strategies to build a viable investing plan.

Who Is A Medium Term Investor?

In general, a medium term investor takes positions for more than a year up to five years.  The smart medium term investors invest at the start of a new U.S. presidential administration, and begin to  close those positions at the start of the month of July of the last year of the presidential term.  

One will notice that quite often, there is a bit of market correction from July up to the U.S. election
date.  In fact the smart medium term investors do not move a finger up before the new U.S. administration begins to put in place clear monetary and economic policies.

Medium Term Position Traders

A financial market investor ought to understand how other players operate.

A position trader is a medium term market player.  That includes investment banks and hedge funds.  A swing trader can be called a medium term market player because he is combining day (short term) and position trading (long term technically speaking).

However, the real medium term investors (not traders) are position investors (traders).  Please note that a typical hedge fund manager is more of an investor than a trader.

Trends Followers Medium Term Investors

A professional financial market trend follower is a medium term investor or market player.  Their aim is to catch the third Elliott wave or buy at the earliest stage of the 1st wave.  Those investors love to fully or partially ride a trending asset price-action.  Please understand that I am talking about the monthly trends or higher. 

Medium Term Cycle Investors

Usually, those are investors that participate in market cycles by taking position at the start of each mini cycle of a wider cycle.

They combine both the fundamental and technical analysis to take advantage of the best chunk of the cycle.  Call them eagles eye investors.  They have large investment funds at their disposal, and thoroughly understand the engines of the financial markets.

Indeed, an ordinary investor that spots their activities can also follow in their footsteps without doing the heavy lifting.

Temporary Medium Term Investor

A temporary medium term investor is another investor that is less active than others.  All he or she is looking for is a cut of the portion of the long term investors.  Those are people who spend a lot of time reading investment journals and subscribe to investing forums.  Some of them do subscribe to Zacks investment and professional investment services that help to make sound investment decisions.

Contrary to the gamblers, they only invest after a reliable professional tips and never stop learning about how to invest like a pro.  

I like very much their attitude because they are on their way to start investing more profitably without throwing away large sum of money.  Their number one goal is to take a cut from the long term investment players.  Most middle class investors and wealthy people are often temporary medium term investor.

Medium Term Gamblers Investors

Be careful about those folks because some of them have been very lucky.  Just because they have been lucky few times, they think they can teach others how to invest.

Remember those Facebook pages, Twitter accounts or ads that show you the proof of their past gains or exploits in the financial markets.  They will convince you that they are experts because they have done it, and have the proof to show you.  I have done it so you too can.  

Personally, I will be careful when someone is showing me all those stuff so perfect and nice. 

No one have ever conquered the financial markets, not even the lucky medium term gamblers.  A person can make a decent amount of money in the financial markets just by chance. 

Probably, he or she bought few stocks in 2009 and by 2016, he could not understand, explain or believe how come he or she made so much profit.  But wait.

That is not a valid reason to say that it is easy to buy and hold.  It is neither what makes one a smart investor.  Indeed, a gambler can learn to invest, but until that time one should be humble. 

I remembered when I began to dabble in the stock markets, I was lucky like many who buy and hold medium term investors.  Though luck does play a role in the life of an investor, that is not all.

So why am having a go at the gamblers?

I like gamblers that recognise that it was just luck that has helped their investment. 

However, I am a bit irritated when a medium term investor and gambler begin to show all the proof of his past exploits.

Please cool it and hang around a bit longer to taste the sweet and sour of investing.  I do care about the gamblers because I will always warn them about the risk of losing houses, savings, equities and children money. 

As they say, past performance is no guarantee of future results in the financial markets. 

Alright, what more can I add?  I believe I can add more to this subject of medium term investing, but that will be for another time.  It will not be too long before I come back with another heart beating investing article.  Please stay tuned.

Conclusion

A medium term investor who understands what is the medium term investment becomes a more able market player.  Moreover, those that consider that the medium term investment is truly for them will also try everything to polish both their skills and knowledge. 

The medium term investment does help to survive the wild short term fluctuations that cause premature losses.

It is also the tool that allows one to combine dividend and asset growth without too many sleepless nights. 

I hope this article will help many to become better medium term investor
that can navigate the messy financial markets.  If this is the case, please do not hesitate to share and bookmark it.  Also, feel free to say few good words about us in various investing forums.  I will really appreciate that.

I wish you the very best in your medium term investment plan.
Happy Investing To All.

This article is written by G Beaulieu
Founder Of Stochastic-macd.com.