My worries have been mostly resolved by carefully reading the posts on Poten's Avatar Law Cafe.

The process over the past day or two has been a very exciting experience for me personally,

and I'm writing this down to review the content once again.

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Long-term investment vs Short-term investment

First of all, I think investing is an act of expecting to make a profit.

Then, when looking at long-term and short-term investments simply in terms of profit,

even if you judge it based on the past data up to the present,

anyone can see that long-term investments have a higher return rate.

(Of course, it's necessary to assume that you have selected a stock that is going up and held it for the long term.)

However, many studies show that people find it difficult to bear losses,

and the past data also shows that there are periods of significant drops during long investment periods.

So, based on the assumption that I made a long-term investment,

I've looked for the conditions that allow for long-term investment and they are as follows.

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Pure money that won't be touched during the long-term investment period
Belief that will not be shaken by drastic fluctuations, especially big drops
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If these conditions are met, I think it's possible to invest for the long term.

Ultimately, I believe that meeting these conditions means having a stable cash flow. (I'll call it ANB).

In other words, if you have a stable cash flow that allows you to live in the present, or ANB occurs,

I wonder if you could have money that you can just forget about even if you invest for the long term.

(Of course, the goal of long-term investment is to make much bigger profits, so you're never forgetting about it!!)

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So, if you create ANB and accumulate investment funds, you can invest for the long term,

and if you invest well in the long term, you can try to expect to get big profits, but why do I think I need to do short-term trading first?

Because I think short-term trading is a way to create ANB.

Do you think that short-term trading is one of the many ways to create ANB?

I think typical ANB examples include salaries, rent, dividends, etc.

On the other hand, short-term trading seems like the realm of professional traders,

and there seems to be a perception that if you cut your losses, you can lose a lot in a short period of time.

I used to think that way when I didn't know much about stocks, but as I learned a little bit, I redefined short-term trading.

Even short-term trading can create ANB if you consider investment methodology, set principles,

and build a system to automatically execute these principles.

Of course, I'm still a beginner, so I've only been running it for about 3 months, so I can't be sure,

but so far, it's been better at realizing ANB than any other investment tool I have.

So, in conclusion, I think you need to create ANB to invest for the long term,

and short-term trading is one of the many ways to create ANB.

My next goal is to invest the profits from short-term trading in long-term investments on a regular basis once short-term trading becomes stable,

and that's why I think I need to do short-term trading first.

Long-term investment follows the trend and makes a profit, and short-term investment makes a profit from volatility. - from Poten's Avatar Law Cafe post