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Understanding the difference between long-term and short-term investing is crucial for investors. Long-term investing focuses on holding assets for years, aiming for capital appreciation and compounding returns. Short-term investing, on the other hand, involves quick trades to capitalize on market fluctuations. Both strategies have their benefits and limitations, with long-term investing often seen as less risky but slower, while short-term investing can be more volatile but potentially more profitable. Investors should consider their goals, risk tolerance, and market conditions to choose the best strategy.

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