Does long-term investing make risk disappear?

A long-term holding strategy can help you be less swayed by short-term price swings and reduce trading costs, but it does not eliminate risk itself.

Long-term holding presupposes a judgment that the investment will be worth more in the future, so if that judgment is wrong, you can lose money even after holding for a long time. It is important to plan by considering not only your investment horizon but also when you will need the money and how large a loss you can tolerate.