Wednesday 27 November 2013

The Difference Between Investing and Trading

Investment and trade are not the same. The returns you are looking for, the length of time it takes to achieve those returns , the amount of risk you are willing to take, and to make the commitment to monitor the investment strategy may dictate whether to invest or trade.
investing activities
Investing holds an asset for a longer period , expect it to increase in value . The best known example is invested in equity funds through a retirement . Many of these funds are held for years and are expected to show a significantAppreciation in the long term .
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is known as " buy and hold " strategy.
Property would be another example of investment, unless the property is purchased for quick change.
Jewelry, art , stamps and collectibles are other examples to invest , know where they are kept for a long time hoping to appreciate their value.
trade
Trading is also investing , but the time frame for a return on investment is a much shorter period of time , usually a matter of a few days or weeks.
The most obvious example would be day trading , where a trader in and out of the market on the same day .
Still other trading takes over a period of several days to several weeks.
Most trading takes place , with individual stocks and commodities , the commodity markets is the predominant vehicle .
Rob Hall is a successful futures trader , President & CEO of his own investment company and international author . His books are traded on learning about futures markets show distributed through Sumas International Sales Ltd on them

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