Time

Time is the period that you should expect to hold an investment. You might have heard the time horizon. The time horizon can last from seconds for day traders, to years for those taking the long-term approach. The time horizon you have is purely dependent on your situation and your risk tolerance. As you can imagine, a retiree has a much shorter time window and doesn't want to see short-term losses as the money might be needed sooner. A younger individual can wait out market forces to liquidate later on and still see a profit.