Do You Believe, "Passive Investors Make More Than Active Investors?"

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: lixer on March 04, 2024, 01:26:41 PM

If you are single, you could trade anytime you have free time. Think about it, lets say you get out of work at 5 pm, at home at 6pm, and you relax and eat and watch something until 8 pm, you still have like 3-4 hours, either you can watch something or play games or read something basically do whatever you want, OR you could just end up with a trading habit as well.

I dont quite agree with that type of lifestyle or habits. If you are having time at work you could do something productive and possibly pursue another hobby or a side hustle. Trading is not necessarily a hustle, it might for some and this might work out for them but not everybody.

Many times people are working in some sector but are studying for a higher degree or position and hence for them the rest of the day is pretty much focused on studying, more so if they are single.

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I would say that trading is much more profitable, or at least has the potential to be. This is why we should be careful about it, and I am guessing that we are not going to get anything major out of it neither. We should consider the possibility that people can't really realize how wonderful it can be.

Of course no major earning can be obtained through trading but often we can get small chunks and once a while a big chunk of money.

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Quote from: lixer on March 04, 2024, 01:26:41 PM

Quote from: TheUltraElite on March 04, 2024, 09:54:00 AM

Quote from: boty on February 26, 2024, 08:55:37 PM

However, for those who are active, of course they have to see the development of the assets they hold every day and will take advantage if the assets they have obtained have made a profit.

The word active does not necessarily mean watching every development. In bitcoin new things come once every few years or so. The term is more applicable in the lines of day trading and thus with altcoins>bitcoin.

I never advocate people to do day trading. I feel it ruins your physical and mental health as well as your family commitments. If you have a job, dont even think about it.

On the other hand, passive would mean long term holding, which specifically in the case of bitcoin has shown wonderful results over the years.

That is quite true, but if you are single then I do not agree with that statement. If you are single, you could trade anytime you have free time. Think about it, lets say you get out of work at 5 pm, at home at 6pm, and you relax and eat and watch something until 8 pm, you still have like 3-4 hours, either you can watch something or play games or read something basically do whatever you want, OR you could just end up with a trading habit as well.

I would say that trading is much more profitable, or at least has the potential to be. This is why we should be careful about it, and I am guessing that we are not going to get anything major out of it neither. We should consider the possibility that people can't really realize how wonderful it can be.

If you are single or doesnt have a family to raise on then i would say that trading is really something that you could really be able to deal up with on which you could really make use of those extra time on something which could bring out that opportunity that you could make money which is way more than potentially on what you are earning now with your current job. The good thing when you are single is that you could really be able to
deal up with things freely and since there's nothing that could bother you then you could have that kind of flexibility when it comes to your time. It is really just that on how you would really be able to make use of it.
Some wont really be that bothering because they arent seeing that future perspective or doesnt have that actual plan on how to deal up with things. They do rather just simply stick into the things
on what they do currently have and doesnt matter about those future endeaours or future building kind of mindset.

batang_bitcoin

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Quote from: |MINER| on February 25, 2024, 05:42:35 AM

If you ask me that question then I will also say that yes passive investor make more profit then active investor . Passive invested means long term investor or we can say long term holder. Now if we look back to 10 years back then those trader who are holding Bitcoin for 10 years now their current holding fund is like a booms so this is a is example for that passive investor make more from active investor. That doesn't mean that active in the store have lower income but active investor has to do a lot with analysis etc .

I'd also say that passive investors make more money. Because in my experience of being a passive investor, I've made more money than with my trades. It's a real thing that you make more money through passive investing as long as you've been accumulating and adding more to your portfolio. And to become a passive investor, it doesn't mean that you have to be passive at all, you can also be actively adding more and recurring more of your stash like if you're holding Bitcoin.

lixer

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Quote from: TheUltraElite on March 04, 2024, 09:54:00 AM

Quote from: boty on February 26, 2024, 08:55:37 PM

However, for those who are active, of course they have to see the development of the assets they hold every day and will take advantage if the assets they have obtained have made a profit.

The word active does not necessarily mean watching every development. In bitcoin new things come once every few years or so. The term is more applicable in the lines of day trading and thus with altcoins>bitcoin.

I never advocate people to do day trading. I feel it ruins your physical and mental health as well as your family commitments. If you have a job, dont even think about it.

On the other hand, passive would mean long term holding, which specifically in the case of bitcoin has shown wonderful results over the years.

That is quite true, but if you are single then I do not agree with that statement. If you are single, you could trade anytime you have free time. Think about it, lets say you get out of work at 5 pm, at home at 6pm, and you relax and eat and watch something until 8 pm, you still have like 3-4 hours, either you can watch something or play games or read something basically do whatever you want, OR you could just end up with a trading habit as well.

I would say that trading is much more profitable, or at least has the potential to be. This is why we should be careful about it, and I am guessing that we are not going to get anything major out of it neither. We should consider the possibility that people can't really realize how wonderful it can be.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: boty on February 26, 2024, 08:55:37 PM

However, for those who are active, of course they have to see the development of the assets they hold every day and will take advantage if the assets they have obtained have made a profit.

The word active does not necessarily mean watching every development. In bitcoin new things come once every few years or so. The term is more applicable in the lines of day trading and thus with altcoins>bitcoin.

I never advocate people to do day trading. I feel it ruins your physical and mental health as well as your family commitments. If you have a job, dont even think about it.

On the other hand, passive would mean long term holding, which specifically in the case of bitcoin has shown wonderful results over the years.

boty

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Quote from: Fara Chan on February 25, 2024, 06:49:51 AM

The income between passive investors and active investors is clearly very different because they basically hold for very different durations to get the profits they want. But I think both can also be very good because they can both get profits even though the amounts are different, because the worst are people who are not at all active in terms of investing and trading in any way but still have dreams of making a profit.

Meanwhile, for passive investors, they usually set long-term targets by not touching the amount of investment they already have except just continuing to increase the amount of investment gradually. And for active investors, they have to be more accustomed to doing many things to balance their time with the profits they seek all the time.

I agree with the opinion you say, of course they hold for different time periods so they will also be different in obtaining profits for them and for those who have never been active in trading and investing but they have a dream of being able to make a profit of course they must be able to learn about investment and trading so that they can try investing or trading to realize the profits they dream of.

Those who set long-term targets certainly have a good understanding of the type of assets they hold and they are also very confident about the profits they will get and this is very easy for anyone to do.
However, for those who are active, of course they have to see the development of the assets they hold every day and will take advantage if the assets they have obtained have made a profit.

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Quote from: |MINER| on February 25, 2024, 05:42:35 AM

If you ask me that question then I will also say that yes passive investor make more profit then active investor . Passive invested means long term investor or we can say long term holder. Now if we look back to 10 years back then those trader who are holding Bitcoin for 10 years now their current holding fund is like a booms so this is a is example for that passive investor make more from active investor. That doesn't mean that active in the store have lower income but active investor has to do a lot with analysis etc .

The income between passive investors and active investors is clearly very different because they basically hold for very different durations to get the profits they want. But I think both can also be very good because they can both get profits even though the amounts are different, because the worst are people who are not at all active in terms of investing and trading in any way but still have dreams of making a profit.

Meanwhile, for passive investors, they usually set long-term targets by not touching the amount of investment they already have except just continuing to increase the amount of investment gradually. And for active investors, they have to be more accustomed to doing many things to balance their time with the profits they seek all the time.

|MINER|

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If you ask me that question then I will also say that yes passive investor make more profit then active investor . Passive invested means long term investor or we can say long term holder. Now if we look back to 10 years back then those trader who are holding Bitcoin for 10 years now their current holding fund is like a booms so this is a is example for that passive investor make more from active investor. That doesn't mean that active in the store have lower income but active investor has to do a lot with analysis etc .

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: Nrcewker on February 12, 2024, 12:31:22 PM

Do a primary job to fulfil the daily demands and pay the bills and passively invest some money on cryptos.

The safety net, indeed I encourage members to consolidate the safety of their own job first before investing or trading. With a job successfully at hand their mental state is stable and they can budget their spending including their investments. Without the job a lot of this is not possible.

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A professional trader on the other hand has huge responsibilities. He has to take more risk and stress while trading. Hence for this reason, passive traders make more money.

Day trading mostly has the max stress and risk associated, which can be avoided by limiting yourself to long term trading only. Bitcoin is built for long term trading in my opinion and altcoins are for day trading except a few of the top 10.

So its not whether one makes better than another, it is also the state they can be healthy and consistent in.

Mauser

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

I am a bit cautious when it comes to YouTube videos about profitable day traders. It always feels a bit like the guys are looking more for earning through their videos and advertising than through actual trading. Warren Buffet is one of the old school value investors that believes in longterm growth and will only buy into companies where he gets a decent return on his money. Dividends are a big part of it and he wouldn't engage in any trading. Also Warren Buffet is a completely different position than the average trader. His company is massive and when invested in a company it's going to very big positions that he acquires. It's not going to be one trade that will fill his order and there are also many people that follow his investments and would immediately buy the same position. The same problems he has when getting out of trade, all the other investors would probably want to get out as well. So, day trading is not suitable for Warren Buffet, which doesn't mean it's not working. There are enough traders that make money with it, also long as you don't over trade and accumulate a lot of transaction costs.

Nrcewker

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Passive Investors do make more money. But they don’t more money from investment. As this is just the side investment, hence they make more money from other sources I would say. It’s good to invest passively. Do a primary job to fulfil the daily demands and pay the bills and passively invest some money on cryptos. A professional trader on the other hand has huge responsibilities. He has to take more risk and stress while trading. Hence for this reason, passive traders make more money.

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

Do You Believe, "Passive Investors Make More Than Active Investors?"

Yes of course, the CEO of Binance who is currently in court said, you won't be rich if you are not a hodler. yes, that's what I believed until now, and I experienced that. Apart from that, if you are a passive investor, you won't open your cellphone every minute to see price movements of the coin asset you are investing in, lol. Apart from that, especially for me, long term investment saves my mind from the very high crypto volatility, being a long term investment makes us not really care about the volatility.

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However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

leave it alone, baby boomers are like that, they criticize, but secretly buy too lol. Grin

Rehan Zakir

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In long term investment, we are investing in a coin with proper research about their team and investors. Long term investment gives good profit but it takes time.
In short term investment coin, we are doing day trading for making profit. It is also a good technique for making money. But in this way, we take small profits. But we takes multiple takes to earn good profit.

Yamifoud

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I can't believe the results will favor passive investors because some traders did a good job and made a huge profit as well. Maybe if we think about safety, that would be investing but the question is which one earns more? We can't point out which one because that also depends on us. Like if choose investing, it means that we know this is what we are good at, and the same thing if we choose trading. Well, taking the two will help us determine which one is more profitable but I don't think it is necessary instead, make it straight to which line we prefer.

Whether it was not the most profitable at least we know we can make it. It was not all about earning a lot but at least, we earn some.

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Quote from: justdimin on February 08, 2024, 03:44:01 AM

Quote from: BitcoinTurk on February 07, 2024, 08:43:03 AM

If I need to comment based on the amount of earnings, I can easily state that the answer will vary depending on the capital of two people who have passive and active income but if I need to comment in terms of percentage, the size of the situation will change. In fact, I can both claim that people with active income earn more and equally claim that people with passive income earn more across different scenarios. For example, let's say there is a house worth 500,000 euros that generates passive rental income. Of course, the rental income of this house will vary depending on the size, location, country, innovation and style of the house but it will not yield more than a few thousand euros per month. If a trader who actively trades earns more than this amount, even with a lower capital, we can easily claim that active income provides more profit. Of course, in this example, it is important to remember that passive income is a guarantee of continuity but active income isn't a guarantee of continuity. In summary, I can state that the answer to this question may vary depending on capital, preferred income method and continuity.

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

And that is because the understanding each one of those traders have of the markets is different so it is natural that they obtain different results as well, this also explains why those that are trying to rely on the knowledge of other traders or even copy their strategies rarely do well, because the way that trader understands the market is different from their own understanding, and it is really difficult for them to make that adjustment and comprehend all the nuances of a strategy that is not their own.

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

He is an experienced businessman and probably knows more about specific crafts than most of us, however, that doesn't necessarily mean what he says should apply to every single entity or individual because you can't copy someone else's business or investment strategies and expect to have the same results as them and the results can greatly vary based on several factors and metrics such as investment time, market conditions, understanding of the craft, and much more.

So, the amount of profit one might earn doesn't always depend on the type of investment or the time of it and there are many things one needs to consider before they make their financial decisions. You need to make sure that you understand the investment type that you are choosing to maximize higher profit probabilities.

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

I've been watching many YouTube videos on how to make lots of money through day trading.

Trading is not investing and traders are not investors.

Invest means you must proactively invest your money by doing due diligent research. It is what I call as proactively investment. I have no idea what are passive investors and active investors. Maybe you implied about proactive investors as active investors that I can agree with you. But I totally disagree with you on passive investors. You invest and get passive income but you are not passive investor.

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However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

Each era will have different people who are considered as icons and legends. Warren Buffet simply does not belong to cryptocurrency and blockchain era.

BitcoinTurk

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Quote from: justdimin on February 08, 2024, 03:44:01 AM

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

Yes, this is actually the main issue I want to talk about. Unfortunately, a trader who actively trades cannot know how much profit or loss he/she will make each month until the end of the month because there is no fixed return from actively trading. For this reason, I made a hypothetical example by thinking about possibilities and probabilities. I would like to point out that I completely agree with the example you gave because it is very unlikely that two or more traders will earn exactly the same or similar amounts of profit.

At this point, the following method may be preferred to compare both income methods;

For example, the average annual earnings of a trader with 10 different active income traders and a trader with 10 different passive income traders can be calculated. In this way we can specifically compare the average annual income of active traders whose net earnings are never known and the income of passive traders whose earnings are almost constant. Of course, this will not be a complete generalization because the calculations and comparison will only depend on annual income.

KingsDen

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Quote from: kamvreto on February 06, 2024, 02:05:09 PM

Quote from: KingsDen on February 06, 2024, 01:02:21 PM

~snip~I think you are just contracting the whole thing
There's trading;
There's short term investment;
There's long term investment.

Someone who takes advantage of the daily price fluctuations to make money is a day trader
Someone who buys a coin and in the next month or 2 observes that the coin has given 12% and decided to sell is a short term investor
Someone who bought a coin and hold for 6months and above to 2, 3, 5yrs is a long term investor

.
If there's something I'm missing, please let me know.

Just need to adjust which one is more suitable to apply. Day trading may look easy, but it can't be done by those who don't understand market analysis and reading. I prefer to make short or long term investments for potential coins or become a Holder of Bitcoin because it will be profitable in the future. Becoming a trader is not easy, it requires fairly good trading knowledge and mastering all kinds of tools and indicators that will be used. traders not only sell and buy, but there will be strict analysis carried out.

Being a day trader is somewhat a difficult thing to do but if done correctly gives daily profits. No matter how little daily profits are, the good part of it is that it accumulates and become something huge. Day trading as you have said is a skill that needs to be learnt extensively. If you are a successful day trader, you must have had some stories to tell from your newbie days. I am not sure there's a successful trader who had not made some mistakes at one point or the other during their learning period. Unless someone who learnt under serious mentorship.

One thing about day trading is that each and everyone of us must have tried it at a time before giving up. We had all thought it is the easiest and simplest way to be rich in the cryptocurrency industry. I stopped trading for three reasons;

I am just an average or below average trader
My emotion fluctuates when I enter a trade
I do not consider day trading as a passive way of earning as it requires my time and eyes always on screen.

But in all, many people are successful day traders, especially those who came from the background of Forex.

justdimin

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Quote from: BitcoinTurk on February 07, 2024, 08:43:03 AM

If I need to comment based on the amount of earnings, I can easily state that the answer will vary depending on the capital of two people who have passive and active income but if I need to comment in terms of percentage, the size of the situation will change. In fact, I can both claim that people with active income earn more and equally claim that people with passive income earn more across different scenarios. For example, let's say there is a house worth 500,000 euros that generates passive rental income. Of course, the rental income of this house will vary depending on the size, location, country, innovation and style of the house but it will not yield more than a few thousand euros per month. If a trader who actively trades earns more than this amount, even with a lower capital, we can easily claim that active income provides more profit. Of course, in this example, it is important to remember that passive income is a guarantee of continuity but active income isn't a guarantee of continuity. In summary, I can state that the answer to this question may vary depending on capital, preferred income method and continuity.

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

Topic: Do You Believe, "Passive Investors Make More Than Active Investors?" (Read 829 times)