The Benefits of Going Long

Going long is a very interesting stock market concept. “When the going gets tough, go long”, almost every advisor is screaming his lungs out at a time when the economy is in doldrums. Going long means planning for the long term. If the markets are not doing well, don’t panic and sell your stocks. That will only make you poorer, but instead hold on to your investments. History has been witness to stock market crashes and the subsequent astronomical rises too. In the long run, your investments will yield dividends and bonuses at the same time witnessing a price rise too.

The interesting fact is this concept is not limited to the stock market. The stock market is actually a reflection of ones character and attitude towards life. The same concepts that apply to the stock market can easily be applied to life. The below is only a handful of examples where the concept of going long can be applied.

1. Financial Planning

The short of finance is small returns and sometimes losses. Think long. Plan for the next ten years in advance. Plan to multiple your assets instead of just growing it.

2. Career Planning

Plan a career. Short term planning only results in an increase of salary. But spurts in salary often reach a threshold and a career never takes shape. Decide on a career path and follow it. If you want to be an accountant and you see an opportunity in your current organization, stay put. Salary and perks will follow if you do your job well and advance vertically and not just laterally.

3. Relationships

Can relationships be planned? No. But once you find the one you love, hold on to him or her for dear life. Love cannot be planned but the consequences can definitely be. Plan where you want the relationship to go and how you want to shape it. We all know how short term relationships end up.

4. Family Planning

 Now that’s tough. I have often seen people plan for short term goals. A new car, the latest gadgets, better kitchen appliances, a vacation are all short term plans. Plan for the long term goals. Retirement, a house, savings for children’s’ education are all long term goals.

5. Business Planning

Isn’t business all about planning? The better the plans, the more successful the business! Increase in profits, better margins are all short term goals. Short term planning results in short life of businesses. Haven’t we just seen the sub prime crisis? Growth, protection of investor interests and value generation are long term goals. Companies are known to have not just survived crises but actually prospered due to this mentality.

The concept can be applied to almost any and all problems in life. Anytime that you have this urge quit, think again. Imagine what you would have done in the market. Apply the same concepts. And you will emerge a winner.