Short term investing
Money invested in securities that are expected to be held for one year or less are considered short term. Examples include marketable securities, commodities, money market instruments, and options.
The return on short-term investments may come in the form of financial income (i.e., dividend income, interest income) and/or capital appreciation. For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly.
Sometimes investors will use stock charts and technical analysis techniques like moving averages or Relative Strength Index (RSI) to find short term investments.
Example of Short Term Investing:
In this example, Bank of the Ozarks, is trading around $14 in July 2008, at a time it has a buy signal (green triangle). Then after the stock moves up to $30 in September 2008, the RSI signal (the red triangle below) gives several sell signals. A short term investor could sell and get a fast profit. This would be an example of short term investing.