When a stock is rallying, you may be tempted to believe you could be nimble enough to dart in and out with a gain. But the real fear of missing out (FOMO) to consider is the prospect of missing out on the long-term returns of holding the shares of a great company in a prospering industry. Not only is it difficult to turn a profit by trying to time the market, but short-term gains, as satisfying as they may seem, might be small in comparison with what a long-term holding could be worth. Also, by the time you hear about a “hot” stock, you may have missed out on easy gains—and risk buying high.

Let’s say you turn a profit on a quick trade. What’s your next move? Can you consistently pick winners? Short-term trading requires a sophisticated understanding of the markets and real-time monitoring of any information that could impact stock prices so that you can make informed decisions. If you’re relying on social media for information, it can be hard to verify that the person providing tips is really the expert they claim to be. Always check with your professional advisor.

Long-term investing may allow you to sleep better at night. When you buy and hold an asset, you not only have time to recover from any downturns but are also less likely to make an emotional decision that’s based on daily swings in the market. Short-term trading, on the other hand, requires day-to-day—and sometimes hourly—management and monitoring of your holdings and news cycles. Each person needs to weigh their risk tolerance.

Paying a capital gains tax is a relatively good problem to have—congratulations, your asset increased in value. However, capital gains tax rates are significantly higher for assets sold after being held one year or less than they are on assets held for more than one year. If you realize capital gains on assets you sold less than a year after buying them, the gain will be taxed as ordinary income (similar to wages or salary)— which is taxed up to 37 percent, depending on your federal marginal income tax bracket. Conversely, the tax rate on long-term capital gains may be 0 percent, 15 percent or 20 percent—depending on your adjusted gross income during the tax year in which the sale was made, which means you may keep more of what you made. The 3.8% net investment income tax may also apply.

The longer your time horizon, the more you can benefit from the disbursement of corporate profits via cash dividends, stock dividends, stock splits and share repurchases during the life of a long-term investment. The distribution of corporate profits via these methods could potentially boost share prices over the long term, and when they’re re-invested in your initial investment, they can help build wealth over time. Keep in mind that not all stocks pay dividends and that if a particular company offers dividends, the dividends are not generally guaranteed to be paid.