TRADING vs. INVESTING
TRADING vs. INVESTING ⁉️💵 So what exactly is investing? This is something that hedge funds and investment banks do, and it’s something that I am getting heavily into as well! 🎉 Those are long term investments — buying a certain asset based on its fundamental value and keeping it for a while 💵🎯 Therefore, investing is based mostly on information — fundamentals. Why is the company worth investing in? Is it disruptive? Is it scalable? Etc. In other words, you are investing in what you believe in 😌 Investors always build the so called “investment portfolios” — a set of stocks/assets (the number can be as low as 5 and as big as a few hundred). That helps to diversify your investment and reduce the exposure, as well as the overall risk. It still carries a lot of risk; however, the risk is a lot lower than in the world of TRADING. But don’t make your choice just yet. There are a few good reasons why most beginners choose trading over investing 💵 So what is TRADING? Its a more active approach. Trading means having a large number of short term trades that can last from a few seconds to a few hours at maximum 🔥 Therefore, its a very stressful way of making money at the financial markets. The so called active “day traders”, “scalp traders”, and “swing traders” can sometimes have up to 50–100 trades per day, depending on their strategy. And the working days can be as long as 6–18 hours with all the prep work 🤯 And this is the type of work that I have done for many years; therefore, I can attest to the level of stress and risk it brings with it! Long term investing is by far a lot easier. But, lets examine the reasons why most people still choose TRADING over INVESTING. The reason is obvious: PROFITABILITY 💵💵💵 Active trading is mostly done with high risk leveraged products such as futures, CFDs, etc. Therefore, it’s possible to make a lot of money quickly. While a good investment portfolio will produce a return of 20–40% per year AT BEST! 🥲 Therefore, it makes sense to get into INVESTING, only if you have at least 200k-300k dollars to work with! Choose wisely ❤️
Want to Keep Learning? For more info on how to start trading and multiply your Cryptocurrencies send me a direct message on Telegram at Charlottelwfx