INVESTING 101: Investing vs Trading

in #money7 years ago

First I would like to say, that I do both, investing and trading. However, I invest 95% and only trade with the 5%.

Here are the reasons why I think that you should consider investing more than trading:

  1. Most of the billionaires out there are investors and not day traders.
  2. More profitable. Less transactions fees, bigger % gains, less taxes
  3. More comfort and peace of mind. If you know your investments, you know the industry and you have confidence, you will feel like your wealth is in a safe place and will just focus on accumulating more when the price is low instead of worry and panic when the price plunges.
  4. More time and personal freedom With more time you can focus on studying other investments, the market direction,
    and keep up with the investments you already have. Also you may decide to do other jobs like a Youtube channel, focus on your steemit blog, creating a second income stream.
  5. More expertise and long term knowledge in the sector or industry, competition, politics and every other layer of the industry.

The three rules I follow before investing:

  1. NEVER SPECULATE, ALWAYS BE OBJECTIVE AND REASONABLE.
    ALWAYS do your research to build your confidence that in the future your investment will gain value for many fundamental reasons and not just because of technical/market analysis.

  2. ONLY INVEST IN WHAT YOU BELIEVE IN
    If it's just not for you but it seems like it should be good, don't invest, you can strike out in investing if you swing without confidence

  3. NEVER INVEST DUE TO THE FEAR OF MISSING OUT, or more likely, because everyone else is talking about it.
    If you missed a good pitch, that's fine. Swinging too late out of fear of missing out certainly struck a lot of investors out.

Be patient, you can wait for a hundred of good pitches to go by and only invest into one that you feel really confident in.

"Invest as if you can only make 20 investments in your whole life." - Warren Buffet

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Swing your bum! LOL yeah I can only imagine. I am just the opposite of you. 95% traders and only use PMs for investing, even then I liquidate on homerun swings. I personally do not believe we are in an environment for new investors though. Maybe wanna edit for them to buy on the next correction? We all know it's coming, matter is when? I believe that the FED has back themselves into a corner stating that they would shrink their balance sheet, so by the fall se should see some really good prices. Just an idea. Great post though.

Trade Well!!

Chris

Great post