Topic: Trading vs investment - page 2. (Read 421 times)
I'm a day trader and i learned a lot from the trading market or even I analyze the coins and their price to a range, but this is only my predictions and in trading no one knows the exact amount or we can say the profit is always there. but we can predict, so, it would be better for day traders to make much profit as i had already make from only day trading.
That is the way for us not to sell at a loss or because of panic seeing the market price is getting down. The investment can give us a profit in the future, especially if we hold potential coins such as bitcoin, ethereum, bnb, and else as those coins prices can increase. юю
If the price of the coin you hold falls, then you will still experience Fomo due to the fact that you did not sell it earlier at a better price. And you will not worry less, despite the fact that this is a long-term investment. In this case, it is necessary to stay out of the market and focus on another occupation.I have experienced this myself. Actually, when doge's price was 80 cents or something like that, I felt greedy and didn't sell them because I wanted a dollar for each doge. As the price fall flat, I regretted my decisions a lot and ended up selling around 35-40 cents later.
The biggest problem was that doge is a meme coin and it was hard to see the futuristic value in it.
If you've not been effective with day trading, do not hesitate to quit with it already and have your focused somewhere like investing.
For that, it depends on the current status of that person. It's really hard to make good winning stats on day trading and even professionals aren't having perfect trades too but if there's a seriousness of pursuing profits from day trades, then try it even losing. It will take time and that's expected.
Try giving it a half a year or over a year test run and see if day trading does make sense to continue or not. Why that long? To be able to experience every trial, challenge, and difficulty along the way.
But as they say, if there's a will, there's a way, and if those people that are too eager and keep trying and trying again. I just wish them all the best and they might find themselves becoming one of the better traders in the market.
That is the way for us not to sell at a loss or because of panic seeing the market price is getting down. The investment can give us a profit in the future, especially if we hold potential coins such as bitcoin, ethereum, bnb, and else as those coins prices can increase. юю
If the price of the coin you hold falls, then you will still experience Fomo due to the fact that you did not sell it earlier at a better price. And you will not worry less, despite the fact that this is a long-term investment. In this case, it is necessary to stay out of the market and focus on another occupation.
OP, you will do well to edit the error in the title of this thread – Taking vs investment. I believe you meant Trading. Having said that, let me quickly make a note on that. Trading is active Investment while Investment is dormant Trading. That's the simple way I look at it. Those who invest are also into business just like those who trade. It's the same way that some investors buy Bitcoin and hodl while others buy and trade them. People can lose money both ways. What matters is finding a nice place of entry and knowing when to exit the trade or investment. Without that knowledge, it will all result in loses for either option.
Types of Trading:
We have basically 5 types of traders
Whatever the last option on that list –Arbitrary – means is new to mean, except you meant Arbitrage Trader. And I believe that's what you wanted to write? Well, for me, I like the Swing, Day and Position Trading plans. We have basically 5 types of traders
- scalpers
- swing trading
- Day trading
- position trading
- Arbitrary Trading
That is the way for us not to sell at a loss or because of panic seeing the market price is getting down. The investment can give us a profit in the future, especially if we hold potential coins such as bitcoin, ethereum, bnb, and else as those coins prices can increase. юю
If the price of the coin you hold falls, then you will still experience Fomo due to the fact that you did not sell it earlier at a better price. And you will not worry less, despite the fact that this is a long-term investment. In this case, it is necessary to stay out of the market and focus on another occupation.
Investors trade too and they are traders. And all traders invest too. It's the duration of there investment of traders that only classifies traders. Which is long and short term traders
If you've not been effective with day trading, do not hesitate to quit with it already and have your focused somewhere like investing.
For that, it depends on the current status of that person. It's really hard to make good winning stats on day trading and even professionals aren't having perfect trades too but if there's a seriousness of pursuing profits from day trades, then try it even losing. It will take time and that's expected.
Try giving it a half a year or over a year test run and see if day trading does make sense to continue or not. Why that long? To be able to experience every trial, challenge, and difficulty along the way.
It's about the convenience that investment can give to you. It always ends up with long term benefits because you have a long term vision with your investments. If you want to take with the short term, it's also okay and you have to be that active in the market, do some daily trading or weekly or monthly. What I can advise you is to at least keep 5%-10% of your salary and put that into bitcoin. If you can't do that much in percentage then 1%-5% or any amount will do and keep doing that when you have money, do the dollar cost averaging strategy. That strategy is effective even a bear market sudden comes out.
I've learned from experience that focusing on day trading hasn't been effective for me personally, considering that I'm still minimal in terms of mastering trading strategy skills, or reading charts all the time. Then for a long time I was out of the market more often. That way, is it really worth investing that I adjust to the conditions in the field. That for me the risk of day trading is still not profitable.
It's about the convenience that investment can give to you. It always ends up with long term benefits because you have a long term vision with your investments. If you want to take with the short term, it's also okay and you have to be that active in the market, do some daily trading or weekly or monthly. What I can advise you is to at least keep 5%-10% of your salary and put that into bitcoin. If you can't do that much in percentage then 1%-5% or any amount will do and keep doing that when you have money, do the dollar cost averaging strategy. That strategy is effective even a bear market sudden comes out.
I've learned from experience that focusing on day trading hasn't been effective for me personally, considering that I'm still minimal in terms of mastering trading strategy skills, or reading charts all the time. Then for a long time I was out of the market more often. That way, is it really worth investing that I adjust to the conditions in the field. That for me the risk of day trading is still not profitable.
I am more into investment for now. Because doing trading, i always can't control my emotion. Maybe some people in here sometimes feel the same, afraid when coin dumped because forced to gain profit in short time and take coins that have small price. And then, i decide to buy some big coins and hold, i think it is different to hold big coins and maybe when speculate into any small price altcoins when i think big coins will stay survived in market and not only be pump and dump coins.
That is the way for us not to sell at a loss or because of panic seeing the market price is getting down. The investment can give us a profit in the future, especially if we hold potential coins such as bitcoin, ethereum, bnb, and else as those coins prices can increase. But if you can buy low and sell high, that will be good as you can profit not just from the investment but also from trading. The small coin price will be okay as long as the price can move many times so you can apply the buy low and sell high strategy.
Most of us find ourselves in the position that we are forced to retrain from a trader to an investor. This happens when the coin has fallen very much in price, but we have no desire to fix the loss, and we continue to hold it until the price of the coin recovers. And in some cases, we become eternal investors, since some coins have no prospects for price recovery.
Crypto trading:
Trading involves the buying of one commodity in exchange for another it could be something of either a higher value or lesser value. For example if you buy ETH in exchange for USD it's called Fx/crypto trading. If Bitcoin is exchanged for ETH then we can say Crypto trading has taken place and this requires lots of analysis.
Investors :
This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.
It is also worthy to note that you can find a lot of investors who are not traders, but very few traders who are not investors.
Most traders have a portfolio that they have allocated for investments, it is just that because they are not completely patient on waiting alone for their investments to yield profit or not too satisfied with the profit margin, hence they seek to make more profits for themselves and their portfolio, so they branch into trading.
I am an investor but that does make me an expert? I would say no. But I've got the experience on what should I do during the bears and bulls. It is the factor that gives us an advantage because we know how to react and what shall be done especially if the market doesn't look good.
While some are in panic during the corrections, investors are acting accordingly through buying because we know what's going to be the next scenario after it.
While some are in panic during the corrections, investors are acting accordingly through buying because we know what's going to be the next scenario after it.
We should bear our emotional side during bear market, because if we can't handle it and overcome fears there's a tendency that we're going to lose. Unpredictable market is what you're pertaining to so we shouldn't allow all negative thoughts lingers in our mind, it's a huge factors that affects our decision. Often time the market corrections made things worst if you can manage to control yourself on different situations.
It's about the convenience that investment can give to you. It always ends up with long term benefits because you have a long term vision with your investments. If you want to take with the short term, it's also okay and you have to be that active in the market, do some daily trading or weekly or monthly. What I can advise you is to at least keep 5%-10% of your salary and put that into bitcoin. If you can't do that much in percentage then 1%-5% or any amount will do and keep doing that when you have money, do the dollar cost averaging strategy. That strategy is effective even a bear market sudden comes out.
In short this is actually on personal preference because we would surely stick into something that really gives us more convenience or really make use comfortable of our investments.Some would be finding that taking it for short term is much more worthy and some do see or find that holding is much better than on actively trading just because they do lack up
some knowledge and skills on dealing with the market.Its on how you do really engage and on how you do look on what will really be beneficial for you or would really
align into your capacity.
Types of Trading:
We have basically 5 types of traders
Investors :
This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.
That’s very true, a lot of people are confusing these two all the time. And where it gets difficult for newbies to understand is when people starts saying that there are just short term trading and long term trading. Along the line I noticed that some people uses long term trading to refer to HODL, which is the definition of the investment as you’ve explained it here. And then they use short term trading in reference to trading itself. I like the way you have broken it down, any newbie that comes across this will get to understand it really well. We have basically 5 types of traders
- scalpers
- swing trading
- Day trading
- position trading
- Arbitrary Trading
Investors :
This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.
To be an investor you have to have patience and control your emotions. The bull run in the market is good news for traders but not in the bear market market we will have to wait for the market to correct if you want to invest you have to take risks investors also want to know the risk in advance entrepreneurs need to know in advance what kind of risks there are in any business. Facing short term losses should not be your concern but should focus on your long term returns.
As an investor, patience is really needed because it takes a long time to get the results or achieve the targets that have been set. in addition to patience and emotion, the capital used by investors must also be strong. The more investment capital used, the more profits will be made. as a long term investor there is no quick return, it does take a long time.In addition to investing, we can also make short-term trades to get instant profits. Trading and investing can both be done at the same time.
As traders and investors, it is also necessary to know technical analysis and fundamentals.
Investment and trading for me is almost the same the difference is when it comes trading you can make quick profits but if you are long term trader its like an investment as well because you hold your money and expecting a rise in the price in the near future from the projects/coins you preferred to trade. Wherein investing you need to wait until you reach the point where you can dump your profits. But if we will make a comparison it's almot the same to be honest, i mean its up to us which is good way in order to roll up our money.
To be an investor you have to have patience and control your emotions. The bull run in the market is good news for traders but not in the bear market market we will have to wait for the market to correct if you want to invest you have to take risks investors also want to know the risk in advance entrepreneurs need to know in advance what kind of risks there are in any business. Facing short term losses should not be your concern but should focus on your long term returns.
We have basically 5 types of traders
Trading is hard and losses will cause success later. If you don't afford losses, you should not trade. The cost to learn trading is more expensive than to learn investing.- scalpers
- swing trading
- Day trading
- position trading
- Arbitrary Trading
Quote
Investors :
This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.
Investors must have mandatory characteristic of real investors. Confidence, patience and disciplined with their investment.This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.
If a person has such characteristics, this one can succeed without understanding of technology. Just choose Bitcoin or Ethereum, because of belief, and get success.
However, I agree knowledge is very important. It supports investor decisions but a person who has knowledge but is lack of investor characteristics will end with failure.
Most times we confuse trading with investment and some times we mix the whole concept together staring lots of confusion in the minds of newbies who struggle to get a firm understanding about how the crypto industry operate.
Hmm, then what? Since we put money on trading, should we just consider it as a gamble and not an investment?
We should treat our trading just like how we handle any investment so the approach will be the same - properly managing it along the way. It's not confusing as long as you are focusing on your goal to build good trading winning stats.
And for newbies, it's already common to reach and experience the confusion stage because after all, they are newbies. You can't expect them to be a better person right away in the new environment that they are not used to.
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