Trading vs Investing (The major differences)

Mahanton

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Quote from: Oceat on May 16, 2021, 11:04:28 AM

Quote from: deejay on May 16, 2021, 10:09:35 AM

Depending on your risk profile; a strategy could be to invest with 60% of your capital and trade with 40%.

It's easy as it shows but in reality it's hard to achieve especially the taking advantage of the volatility of the price in trading. A proper risk management and a stop-loss is required to achieve this goal whether you can risk 80% of your capital or 60% as long as you know the risk and you are confident what you are doing.

Investment on the other hand is quite good if you like to hold your investment for a long time it's less hassle since you are just holding and accumulating everytime you see a price dip. Both really required a vast knowledge about the market and it's not easy as what the infographic tells. Experiences will tell you what is reality behind those who made a profit in trading.

No matter which one you would deal with because it all matters with self skill and self experience along with these things because you can actually make out fast shift between from trading to investing
and will depend if you can see some opportunity for you to pull out profits or secure it out basing with your own analysis and not all would really be having these kind of skills and this is what
differs into those who do just starting up and to those who had been on this market for how many years.Therefore, this could acquired in a long period of time even though its easy as it sounds
but when you are already on the actual situation then this is where you would realize that things arent that simple as it looks.

yohananaomi

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Quote from: suryogandul on May 13, 2021, 10:35:21 AM

Quote from: Luzin on April 08, 2021, 10:53:10 PM

As far as I know, trade and investment are not that different. They are the same, wanting to make a profit. All the images you share and their captions are used for giving. Maybe a little difference is in terms of who did it. As far as I know investment is passive. We do not run independently.

In contrast to trading we are more active in controlling what we will do. Perhaps the difference is that investments aim at creating wealth over a long period of time by buying and holding. Whereas trading aims to make a profit by buying and selling for a much shorter period.

but for investment, usually our profit is predictable from the start we get an adjusted profit, but for trading we need to be harder to cultivate. sometimes the profit can be bigger or smaller when we trade

obviously investing is the easiest thing to do and with less risk but requires a long time for what is expected to be realized. usually the investment will change every 4 years when the halving occurs, so that the funds are stored for a long time in the investment.
It is clear from the point of view that funds will be needed which are not being used for anything else purely for investment.

but not with trading, because there will only be two consequences that can occur, profit or loss. If we are smart in managing and analyzing, we can be sure that what we do for trading will grow fast, but if we do something wrong, the funds could be lost.

Oceat

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Quote from: deejay on May 16, 2021, 10:09:35 AM

Depending on your risk profile; a strategy could be to invest with 60% of your capital and trade with 40%.

It's easy as it shows but in reality it's hard to achieve especially the taking advantage of the volatility of the price in trading. A proper risk management and a stop-loss is required to achieve this goal whether you can risk 80% of your capital or 60% as long as you know the risk and you are confident what you are doing.

Investment on the other hand is quite good if you like to hold your investment for a long time it's less hassle since you are just holding and accumulating everytime you see a price dip. Both really required a vast knowledge about the market and it's not easy as what the infographic tells. Experiences will tell you what is reality behind those who made a profit in trading.

deejay

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Depending on your risk profile; a strategy could be to invest with 60% of your capital and trade with 40%.

SacriFries11

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Quote from: kolbalish on April 08, 2021, 02:14:35 PM

Trading is a risky investment. Trading is as short a time as possible. And investment can be anything. Most investments are long-term. It is not let out that there will be profit and loss in trading. There can be profit and also loss. And the chances of losing investment are very intense.

Yes, I agree but I think the major difference is that trading requires a lot of knowledge and experience before you can get profit but it's not takes long compared to investing. Investing requires a lot of research about the project, their project goals roadmap and many more. In short, fundamental analysis is very important in investing. I think there a huge advantage if we know these two way in earning money in cryptocurrency. I like investing more than trading, and I think I'm not the only one.

gamer4156

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This is truly useful, however one thing you miss is that you do exclude the source the picture was taken from. goodness or perhaps it is your own assortment. Most speculations are long haul. It isn't let out that there will be benefit and misfortune in exchanging. There can be benefit and furthermore misfortune. Furthermore, the odds of losing venture are exceptionally serious. I just need to worry about project explores and making reserves accessible to contribute as opposed to understanding diagrams and dissecting various market information.

Issa56

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From the little experience am having I personally believe investment is more better than trading most people lose there money in trading due to they don't have experience and some might lose there money just because they did not do more research about a coin before buying It which might endup to be a shit coin or a scam project which they will lose there money. But if you are investing the first thing you have to do is make sure you do your research first and get the right coin after that you can just buy the coin and keep and set your target.

dezoel

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Fundamental analysis can still go into trading, and that's because it can help traders to be able to determine the asset or coin that they should be trading next, and that means they will be trading coins that are more volatile and has more liquidity. And by the way, imagine if one has to be investing in stocks? I have invested in stocks once and it wasn't really what I wanted and that's why I left then and looked for other things to do with my money, cause I felt it wasn't worth it.

If I was going to even invest in them, then I should first if all invest in other areas and raise huge capitals and when I have more than enough I can then start investing in stocks and be able to leave it for a year and more to get those small profits. And if I'm lucky they can boom and have huge growth to make me even more. For cryptocurrency is the best when it comes to investing, and that's the reason I started investing.

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Quote from: cryptolord2077 on May 13, 2021, 07:04:32 PM

Investments are better because your risks are significantly reduced. You bought - you are waiting. In trading, you constantly make moves, each of which can lead to losses.
If you do not make mistakes in trading, then your choice is trading, but there are only a few such people.

There are traders who are losing but including those traders that are hitting it and making a fortune from it, there are traders who also win.

Although the ratio of those traders that are losing are higher but there's still those that make money. It's impossible that there's no one that commits mistake because there are a lot of them that still make mistakes.

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Quote from: Natalim on May 14, 2021, 09:10:10 AM

Quote from: goaldigger on May 14, 2021, 01:34:32 AM

The study says this one, traders are losing because they lose opportunities in the coming years and I have to agree on this one since I do trade BTC before and I regret doing that because of the value today. Anyway, we all have different strategy and we cannot blame traders for actively working on the market so they can achieve their goals. I personally play long in stock market and do trading in cryptomarket, its about your risk tolerance and of course your availability.

Good strategy though, the stock market is more secured as it's less manipulated compared to the crypto market, but in terms of profitability, we can make a bigger profit in crypto if we are smart enough in finding the right opportunity. The high volatile market could give better profit for smart traders, that's why we can't blame some people who focus on crypto as there's big money in here.

Stock market is as easily manipulated as crypto, even more so in that regard. The only difference is in the stock market world there is SEC which would stop you if you do not bribe the politicians first, in the stock market world you could literally bribe a politician, get a new law passed, and after you make a deal with the politician about it, do a huge buyback of your stocks, then get the deal officially put into law, then sell after the stock increases and you made a huge profit. This has happened a billion times already, it is perfectly lawful as well.

Crypto is decentralized, it can't be manipulated that way because there is nobody at the top making decisions, however it is also manipulated because with one Elon tweet it can go up or down, but it is still all the people who buy and sell that make the decision. For example, SNL sketch of Elon was seen as something that would increase the price, it plummeted it.

Ararbermas

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Quote from: Alucard1 on May 14, 2021, 09:28:10 AM

With this picture, we can now know the differences between trading and investing, both are a risky thing, but if you want to have a little bit of security in profit then you may go for investing for the long term especially investing in bitcoin, as bitcoin continuous on the increase year by year. Beginners also prefer investing compared on trading because trading requires a lot of knowledge and is really complicated for me, unlike investing that you only need to buy then wait for it to increase, much better if you will hold it for the long term.

correct trading requires knowledge and skills just to prevent losses and of course in order to win.. Unlike investment that you only need to put money in a basket especially in some trusted projects such bitcoin and top 10 crypto currency in the market, by holding long term it makes effort less and you can assure that afterwards you can obtain good profits.. Not the same with trading wherein you're not sure about your win rate everytime when trading because sometimes market becomes unpredictable. .so definitely i can say it has big difference no need to make a comparison because its obvious though.

Alucard1

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With this picture, we can now know the differences between trading and investing, both are a risky thing, but if you want to have a little bit of security in profit then you may go for investing for the long term especially investing in bitcoin, as bitcoin continuous on the increase year by year. Beginners also prefer investing compared on trading because trading requires a lot of knowledge and is really complicated for me, unlike investing that you only need to buy then wait for it to increase, much better if you will hold it for the long term.

Natalim

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Quote from: goaldigger on May 14, 2021, 01:34:32 AM

Quote from: blackened515 on May 13, 2021, 02:59:04 PM

I have preferred investment ever since I discovered myself that trading is a thing of a poor mindset, I started to understand that the billionaires are all long term investors, and they are the ones that travels to wherever they want in the world, I choose investment over trading am to me 1 year now looks like a month, if you can think this way then you will beat out from poverty.

Short term investment is not profitable, it socks you silently while others are getting richer gradually. Long term investments is the only way forward.

The study says this one, traders are losing because they lose opportunities in the coming years and I have to agree on this one since I do trade BTC before and I regret doing that because of the value today. Anyway, we all have different strategy and we cannot blame traders for actively working on the market so they can achieve their goals. I personally play long in stock market and do trading in cryptomarket, its about your risk tolerance and of course your availability.

Good strategy though, the stock market is more secured as it's less manipulated compared to the crypto market, but in terms of profitability, we can make a bigger profit in crypto if we are smart enough in finding the right opportunity. The high volatile market could give better profit for smart traders, that's why we can't blame some people who focus on crypto as there's big money in here.

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Quote from: blackened515 on May 13, 2021, 02:59:04 PM

I have preferred investment ever since I discovered myself that trading is a thing of a poor mindset, I started to understand that the billionaires are all long term investors, and they are the ones that travels to wherever they want in the world, I choose investment over trading am to me 1 year now looks like a month, if you can think this way then you will beat out from poverty.

Short term investment is not profitable, it socks you silently while others are getting richer gradually. Long term investments is the only way forward.

The study says this one, traders are losing because they lose opportunities in the coming years and I have to agree on this one since I do trade BTC before and I regret doing that because of the value today. Anyway, we all have different strategy and we cannot blame traders for actively working on the market so they can achieve their goals. I personally play long in stock market and do trading in cryptomarket, its about your risk tolerance and of course your availability.

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Quote from: rosebrand on May 13, 2021, 06:48:25 PM

You know investment seems to be more better because it saves someone the stress of being available to monitor the market. Both trading and investment are both good ways of generating profit in crypto but trading seems to complicated due to the fact that you need core knowledge about the market in order to be a successful trader, but investment is just easy that even a newbie can invest and start fetching out profit, tho investments is for long teams while while trading is mostly short term because many traders are known as day traders.

Investments are better because your risks are significantly reduced. You bought - you are waiting. In trading, you constantly make moves, each of which can lead to losses.
If you do not make mistakes in trading, then your choice is trading, but there are only a few such people.

rosebrand

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You know investment seems to be more better because it saves someone the stress of being available to monitor the market. Both trading and investment are both good ways of generating profit in crypto but trading seems to complicated due to the fact that you need core knowledge about the market in order to be a successful trader, but investment is just easy that even a newbie can invest and start fetching out profit, tho investments is for long teams while while trading is mostly short term because many traders are known as day traders.

blackened515

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I have preferred investment ever since I discovered myself that trading is a thing of a poor mindset, I started to understand that the billionaires are all long term investors, and they are the ones that travels to wherever they want in the world, I choose investment over trading am to me 1 year now looks like a month, if you can think this way then you will beat out from poverty.

Short term investment is not profitable, it socks you silently while others are getting richer gradually. Long term investments is the only way forward.

conected

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Quote from: Xinarae* on May 12, 2021, 12:56:06 PM

If there is a difference between the two investing money works different ways of investing making money over time. The horizon is short lived while maintaining security for business purposes when money is invested in a project the horizon is relatively long when it comes to holding assets in trading the trader has to analyze the securities and the future trends by analyzing the technology. In contrast to the analysis by the data obtained through trading activities the investor in the investment has to do a fundamental analysis to analyze the project plan or product to estimate its intrinsic value.

- Yes, the difference is very clear in terms of time, investment always directs users to an increase in price based on the potential and plan of the project while trading is an enhancement of the method of movement, the user needs to create the most suitable instincts and qualities to increase the profit range and remove the weaknesses and traps of the market. A trader's skill is the point at which to exploit profits but for investors, exploiting profit to them is a simplification of the skill side.

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Quote from: Luzin on April 08, 2021, 10:53:10 PM

As far as I know, trade and investment are not that different. They are the same, wanting to make a profit. All the images you share and their captions are used for giving. Maybe a little difference is in terms of who did it. As far as I know investment is passive. We do not run independently.

In contrast to trading we are more active in controlling what we will do. Perhaps the difference is that investments aim at creating wealth over a long period of time by buying and holding. Whereas trading aims to make a profit by buying and selling for a much shorter period.

but for investment, usually our profit is predictable from the start we get an adjusted profit, but for trading we need to be harder to cultivate. sometimes the profit can be bigger or smaller when we trade

Xinarae*

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If there is a difference between the two investing money works different ways of investing making money over time. The horizon is short lived while maintaining security for business purposes when money is invested in a project the horizon is relatively long when it comes to holding assets in trading the trader has to analyze the securities and the future trends by analyzing the technology. In contrast to the analysis by the data obtained through trading activities the investor in the investment has to do a fundamental analysis to analyze the project plan or product to estimate its intrinsic value.

Topic: Trading vs Investing (The major differences) (Read 605 times)