Investors would often make necessary sacrifices for long term purposes. A good gain in the end is better compared to short term gains with losses in the end. Investors would have to let go of some investments since they just cannot let go of something good in the end.

There are times wherein short term goals are more important that the long terms goals. It is a little bit absurd but in the proper stage, you will be able to let go of the long term goal just to save what you have right now.

There is always an exception to the rule and that includes the rule of letting go the long term in favor of the short term goals.

Establishing a Presence

A smart investor will have two types of investment plans: a short term investment plan and a long term investment plan.

The former would often deal with the riskier type of investments since it will provide the better yield fast while the latter would have to deal with less risk investment as the yield, although small, will eventually collect a huge amount because of time factor.

The riskier investment would usually be sacrificed in favor of the long term investment. But the long term investment would have to let go when you are starting up and you are having trouble with your short term investment plans.

You need to have a strong start and your long term investment could wait a little bit since the yield would have to be placed on the long term investment.

Harnessing the Market

Another reason on why you should let go of the long term investment is to harnes the market. This is also related on properly establishing yourself in the market. You will always be at risk of losing everything or at least in short term investment plan.

Not everyone could get the stock market in the first time and they might lose a lot. If you do not concentrate on the high risk investment first – in time and resources, you might not be able to harness the long term investment.

Think of it as practicing in the stock market. You will be able to earn considerably in the stock market after a few tries. When you have harnessed the market, then you can start in building a portfolio with low risk – long term investment option.

Dwelling on the Market

A caution in investing in short term market in favor of long term market: when you start to lose considerably, it is time to rethink of your goals. Although you are able to build a good portfolio when you start out strong in high risk investment plan, this type of investment might not be for you.

Do not push yourself too hard on high risk investment planning since it will cost you almost everything and you are not able to start again, even in low risk investment.

When you see yourself losing too much in high risk scheme, it should be the time to rethink of your goals.

You might be better off in sticking in long term investment plans rather than being aggressive. Although everyone could invest in the aggressive stock market, not everyone will be successful.

There are times when the long term goal should be sacrificed in favor of short term goals. But this should only be limited when the short term goals would lead to a good yield so that the long term investment plan would start better.

This should not be, however, the absolute rule since there are times when an investor is better off in staying in long term, low risk investment portfolio.