Difference of Trading and Investing? - page 45.

deisik

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Quote from: ktabb on May 31, 2017, 09:59:40 AM

I would say that investing involves picking some asset that you want to own for a specified amount of time and holding it until you are ready to exit. Usually this would be done while saving for a major expense like buying a house or paying for your kid's college

And how's that different from trading?

As to me, trading also involves "picking some asset" and waiting until you want to close your position ("ready to exit"). Further, "changes in value and market fluctuations" are essentially the same thing. Market fluctuations is a general term for changes in the price (value) of a specific asset over a certain period of time. Personally, I'm inclined to think that a major difference between investing and trading consists in that with investments you are trying to earn primarily via price change (i.e. looking for a maximum price spread between your entry and exit points) while with trading via volume (i.e. looking for a maximum trading volume with a specific price spread)

roadbits

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Quote from: kpcian on May 31, 2017, 01:56:06 AM

Quote from: bamboylee on January 17, 2017, 08:56:07 AM

When you buy something in hope that it will have greater value in the future, that is investing. Some examples are gold, assets, land or bitcoin.

While trading is a little bit different. You can purchase or sell something for some profit. You can be profitable in trading whether the price is going up or down.

Well explanation..
In terms of purchase goods or assets, your explanation is fine ,on the other hand, there is a way of thinking about the time period, if you can take an initiative for getting involved a economic activity for a short time then it's called trading, but when it's related with long term effects then it's called investment.

Trading and investment both are all most equal. What you said it's right only the time period will tell you that you are doing trading or investing. The short time investment is called trading. Here we expect only a few % of margin profit and if we get that we will sell our product. But the investment is not like that we will invest money and we wait or a long time. It will give us huge profit, but it takes long term this is the difference b/w trading and investing.

ktabb

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Quote from: ScaryMe on January 17, 2017, 07:01:35 AM

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

I would say that investing involves picking some asset that you want to own for a specified amount of time and holding it until you are ready to exit. Usually this would be done while saving for a major expense like buying a house or paying for your kid's college.

Trading, on the other hand, involves buying and selling assets in an attempt to profit on both changes in value and market fluctuations. This is usually done to earn money rather than to save for something.

You can practice both here! www.demoinvestor.com

shadelockme

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As I would see it exchanging and speculation is have differences.Trading is a piece of venture technique that you can acquire cash or Bitcoin. Investing is a strategy that how you profit or Bitcoin in different technique, so you have to hold up to get benefit. while exchanging is you offer sorts of coins on market and you can get benefit in a shorter time than contributing. be that as it may, it relies on upon your technique, to what extent you will spare your cash available and offer it.

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Quote from: kpcian on May 31, 2017, 01:56:06 AM

Quote from: bamboylee on January 17, 2017, 08:56:07 AM

When you buy something in hope that it will have greater value in the future, that is investing. Some examples are gold, assets, land or bitcoin.

While trading is a little bit different. You can purchase or sell something for some profit. You can be profitable in trading whether the price is going up or down.

Well explanation..
In terms of purchase goods or assets, your explanation is fine ,on the other hand, there is a way of thinking about the time period, if you can take an initiative for getting involved a economic activity for a short time then it's called trading, but when it's related with long term effects then it's called investment.

Sometimes trading is related to investing. The crossover disappears when you're talking about day trading.

With cryptocurrencies you're hardly investing at all unless it's a major asset like Bitcoin. Most of it is just speculative trading and couldn't really be compared to investment.

kpcian

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Quote from: bamboylee on January 17, 2017, 08:56:07 AM

When you buy something in hope that it will have greater value in the future, that is investing. Some examples are gold, assets, land or bitcoin.

While trading is a little bit different. You can purchase or sell something for some profit. You can be profitable in trading whether the price is going up or down.

Well explanation..
In terms of purchase goods or assets, your explanation is fine ,on the other hand, there is a way of thinking about the time period, if you can take an initiative for getting involved a economic activity for a short time then it's called trading, but when it's related with long term effects then it's called investment.

Nivir

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It has similarities but for me when you say trading then you are not expecting it to hold that long as you will be taking profit as early as possible. I think it has to do with time frames. As an investor you are looking for long term. For example you want to invest in Ethereum. You will Eth but you won't be locking it in an exchange as you don't plan to trade it anytime.

gabmen

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Quote from: hanpoz on May 29, 2017, 11:39:58 AM

I can't state that there is a contrast amongst exchanging and contributing on the grounds that to the extent i know. When you do exchanging, you are now contributing since you are purchasing an advantage and you are quite recently sitting tight at its cost to go up or to go higher so after the cost go up and after it achieves your fulfillment then you can offer it for your neighborhood cash which is somewhat exchanging. So i think there is no distinction.

I agree. and bith require the same skill and trait to be successful. one can even argue that these two are just terms that have pretty much the same meaning. though there are little differences depending on how a person perceives trading and investing but in general, I think they're very similar to each other

hanpoz

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I can't state that there is a contrast amongst exchanging and contributing on the grounds that to the extent i know. When you do exchanging, you are now contributing since you are purchasing an advantage and you are quite recently sitting tight at its cost to go up or to go higher so after the cost go up and after it achieves your fulfillment then you can offer it for your neighborhood cash which is somewhat exchanging. So i think there is no distinction.

Harlot

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Quote from: Cherylstar86 on May 29, 2017, 08:42:39 AM

The difference between them is it's way of making profit and with trading you need a lot of experience and skills in order to develop proper decision making. When comparing investing to trading it doesn't really required a full skills to develop proper decision making, but the only certain is the credibility of the one's offering you and investments. You really need extra care on choosing good investment firm to deal with, because investing has the bigger risk compared from trading sites offering you an investments partnership for trading altcoins; which is very popular now in crypto currencies.

You are somehow right with your statement, just to put it in other terms trading relies heavily on Technical Analysis and Investing relies heavily on Fundamental Analysis, Technical Analysis is the use of price charts in which you analyze trends in making your decision if you will buy or sell. Fundamental Analysis is when you look at the financial status, projects, and other future outlooks of that investment in order for you to come up a decision. From my experience Fundamental Analysis is much easier to do compared to Technical Analysis.

Cherylstar86

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The difference between them is it's way of making profit and with trading you need a lot of experience and skills in order to develop proper decision making. When comparing investing to trading it doesn't really required a full skills to develop proper decision making, but the only certain is the credibility of the one's offering you and investments. You really need extra care on choosing good investment firm to deal with, because investing has the bigger risk compared from trading sites offering you an investments partnership for trading altcoins; which is very popular now in crypto currencies.

Xester

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Quote from: kpcian on May 29, 2017, 06:15:42 AM

Trade and investment are not similar, there are some differences between them, in terms of the time period, function and procedures. Trading basically occurs in the short run basis and investment indicates in the long run period. Trade needs to take risk in a regular basis but investment doesn't require, and Trade creates more profit rather than investment.

One particular idea is that the difference between trading is investment lies on the stock market. Investor owns a share and the trader is the stock player. But for me investment has many forms it could be a piece of land, insurance and anything that you place a capital in an expectation of gaining or getting a profit. Trading is one form of investment, it is when you put your capital and plays it on the market in the hope of a good return.

kpcian

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Trade and investment are not similar, there are some differences between them, in terms of the time period, function and procedures. Trading basically occurs in the short run basis and investment indicates in the long run period. Trade needs to take risk in a regular basis but investment doesn't require, and Trade creates more profit rather than investment.

cram03

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There is a little difference about the two.
Both are for long term BUT in investment there is a chance that your money will lost because some of investments now a days are scam, unlike in trading your money is in your own hands you will decide what to do with it. trading for the best.

Seeker01

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its depends on your goal. if your goal is long term well investing is good while if for short term goal trading is more suitable. Investing is something you hold for a long period of time while trading is the opposite. at the end of the day your goal is important set your goal properly.

Mbah Tyo

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1st of May

Quote from: ScaryMe on January 17, 2017, 07:01:35 AM

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

As far as I am trading is we are investing stocks but, we who manage those shares, want to profit or loss depends on us. Another case with the investment we provide capital but we can not manage it, we only accept the results of the management of these shares

rchstr

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Quote from: adzino on May 27, 2017, 04:06:26 AM

Investing = long term + larger profit.
Trading = short term + less profit.
You will be able to do day trading that is sell your stock the same day to make marginal profits which you won't be able to do so with long term investment. Day trading won't give you huge profit like investment but comes with smaller risks.

Investing doesnt mean that you will get larger profit than trading. for example when the coin you put your investment is just shit you will probably get rekt even if you hold it for a long time. some other coins pumps upto 100% in an instant. a hype is needed but yes, it is part of trading.

Harlot

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Quote from: adzino on May 27, 2017, 04:06:26 AM

Investing = long term + larger profit.
Trading = short term + less profit.
You will be able to do day trading that is sell your stock the same day to make marginal profits which you won't be able to do so with long term investment. Day trading won't give you huge profit like investment but comes with smaller risks.

I don't think that there is a related profit or how much you will gain between the two, it purely depends on how and when you position. For instance there are one day trades that give you a gain ranging from 50%-400% (in some extraordinary stocks) and there are stocks that will give you the same gain but for a longer period. But you are right about investing being long term and trading being a short term holding your position. Also trading like what you have said is riskier than investing as what you are doing is buying something out of an speculation or news about something good.

adzino

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Investing = long term + larger profit.
Trading = short term + less profit.
You will be able to do day trading that is sell your stock the same day to make marginal profits which you won't be able to do so with long term investment. Day trading won't give you huge profit like investment but comes with smaller risks.

millgates

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Quote from: LegendOF45 on May 26, 2017, 11:45:23 PM

I think it depends of period of time, to get maximum profit, certainly investing need longer periods of time (over 3 years) while the trading could generate gains of up to 100% in just a short tempo (a day only).

Yes that is right but it also depend on where do you invest your money. If we invest in altcoin we better make a observation before investing because not all altcoin is good.

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