Mid term stock investing

As compared to long term and short term, mid term stock investing strategy is quite different, in-fact it is purely done by doing technical as well as fundamental analysis. The long term strategy purely depends upon fundamental story of your favorite stock pick, and short term stock pick is purely depends upon technical analysis.

One can differentiate the stock holding categories as
Very short term: Stock holding for very short term basis can be treated as stock trading or just to trade stock, which can be day-trading, or buy today sell tomorrow stock trading, or maximum couple of weeks, but not beyond that.
Short term: Couple of weeks to less than a year.
Mid term: 1 year to 4 years perspective.
Long term: 4 years till the investor wants to hold his stock pick.

Mid term stock investing is basically done to reduce extra burden of tax and to make adequate profit gain from the cash which you have achieved in your bank savings. It is neither a good understanding nor a bad understanding to hold a stock on a medium term basis.

Many a times it do happen even though your stock pick choice is perfect right and you have done stock investing in right stock, at right time, and at right price, but due to some unusual circumstance happening in the stock market, you immediately comes in danger zone, and your stock pick is also hammered significantly keeping you on loosing side, and this can last until the stock market completely recovers from it unusual circumstances. Many good stocks unnecessary gets hammered with any negative influences in stock market, but if your stock pick is just right, you definitely have a chance to make good profit in medium term also.

It is having said that stock investors like returns from their investment, if your stock pick is just perfect, even though after you stock pick gets hammered, it has more chance to bounce back at the same phase, because their valuation becomes more attractive and investors rush in to pick those stocks, giving you the stock rise. So for doing mid stock investing, technically as well as fundamentally the stocks should be good.

Stock market prediction is very complicated process, and looking from the mid term perspective it is still more complication, at such condition stock research is most important aspect which is done with the help of technical analysis and fundamental analysis.