TRADING OR INVESTING ?

 TRADING OR INVESTING

 One of the most discussed and hot topics amongst youngsters these days is whether to trade or to invest? Well before understanding what we should do let's understand what are these two terms and their individual meanings.

TRADING

" THERE IS A TIME TO GO LONG, A TIME TO GO SHORT, AND A TIME TO GO FISHING"

              - JESSE LIVERMORE

Trading is a short-term game. We have to make sure that we make the best use of time to make profits. In trading, profits are made by buying an asset at a lower price and selling at a higher price. Here we can also go on short selling which is, selling at high prices and buying at low prices. Here the game is of chart readings and small time frame analysis. Traders use different types of technical analysis tools such as RSI, STOCHASTICS, PIVOTS, etc. As a trader, it's important to make good profits and cut losses.

INVESTING

 "THE STOCK MARKET IS A DEVICE FOR TRANSFERRING MONEY FROM THE IMPATIENT TO THE PATIENT"

                            - WARREN BUFFETT

This statement by "THE ORACLE OF OMAHA" Warren Buffett clearly speaks a lot about investing. So when we talk about investing we are clearly talking about the long-term investment and larger profit ratios. In investing we look for the fundamentals of the companies and then invest in good companies that are undervalued or have been out of sight of investors for a long time. The magic of investing lies in fundamental analysis. If analyzed properly the right stock investment can take you up the role with just one flip but the same goes with a wrong analysis, resulting in the destruction of your hard-earned money.  So basically investing is a long-term vision and so is the timeframe of doing it. An investment purpose portfolio can be kept up to 10 years and with these long-term investments comes the other profits given by companies through dividends, splits, and bonuses.

CONCLUSION

It doesn't matter whether you are a trader or an investor, in the end, both have the same goal that is to make a profit from the market. The market asks for the daily time from a trader where an investor needs just deep research on a company. Investment is also referred to as a growing money scheme like you are doing a job and need to put your savings in a safe place then I believe it's better to put money in the market investments and ETF's than in the bank account. Investment has been a retirement paycheck for a really long time but trading has now become a business opportunity in itself. After the lockdown, there were a lot more people interested in trading than investing.

This growing interest of students in the stock market is really good to see. But people still think that they can make quick money from trading which is the reason for 90% of failure stories of market traders. Find your niche, look what you are more inclined towards and the most important thing is not to jump into trading or investing without proper knowledge. It doesn't matter what you do until you are making money from the market than giving money in the market. So make sure you don't put your hard-earned money at risk. Keep things simple and learn through the process because, in the end, it's just the profit that matters.

 Thank you all for reading.