Why do you need to understand the difference between short-term and long-term?

Short-term trade: relies on quick movements (hours or days). Requires monitoring and technical analysis.

Long-term investment: relies on the strength of the project and the market (months or years). Requires patience and fundamental research.

Mixing them up causes problems:

• You enter an investment and treat it as a trade → you end up with a loss during a downturn.

• You enter a trade and leave it as an investment → you get stuck in a weak currency.

Determine your intention before buying: Am I in for the short or long term?

Clarity of the time frame protects you from random decisions.