Inflation:
In long term trading you are able to catch-up and to beat the price increment or decrement trend. In the long term trading a person will not be affected by the small fluctuations and instability. In short term trading traders can be affected by inclination of a particular stock or sector, liquidity etc. but a person doing long term trading is saved from these problems.

Compounding:
Time is the best friend for everybody and especially for the investor. Compounding or compound interest is a very useful mathematical process in which interest which is invested capital earns also commences to earn interest and that is also added to your capital. This is a wonder of investing. As long as it allowed this process continues. This interest depends totally on time.

Reduction in risks:
As compared to short term trading, long term trading lower all risks which are related with stock trading. There are many forces in stock market which always try to get the best from you. These forces include liquidity, economic instability, inflation, and many other related forces. In long term trading all these problems can be corrected unlike the short term trading.

Dividends:
If an investor holds stock of any company, the stocks are enlarged by dividends and other bonus shares. Every single unit of shares gets interests which are known as earnings per share. It is provided by the company in which you have invested in. These bonus stocks and interests per share are given by the company if the company has performed well in the market. This is only available in the long term trading and this totally depends upon the company in which you have invested.