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Balancing Short-Term and Long-Term Investment Perspectives
Investors should avoid biases that come with being too short-term or too long-term in their investment approach. It is crucial to match financial asset allocation with different time horizons, understanding that life happens in the short term while investing is a long-term endeavor. Attempting to turn long-term investments into short-term instruments through day trading is ineffective, as assets will always function based on their inherent time horizon.