Active Trading vs Long Term Investing
When We About Stock Market There Are Majorly Two Types Of People Who Come Here To Earn Money. The First Category Of People Is Investor And Other Category Of People Is Trader. In This Post I Must Be Clearing Your Doubts Related To Difference Between Trading And Investing. So Basically There Are Two Methods Of Earning Money First Method Is To Buy And Sell Equities Or Shares Regularly And Other Method Is To Buy Equity Or Shares And Hold It For a Long Term To Gain Multibagger Returns And Secure Your Money For Better Future. The First One Method Is Called Trading And Second One Method Is Called Investing. It Totally Depends On You Whether You Are Planning Gain Returns For Short Period Of Time Or You Want To Gain Returns For Long Period Of Time And Secure Your Future And Money. There Are Many Positive And Negative Things Both About Trading And Investing Which You Should Be Aware Of Before Starting, So Lets Discuss All The Positives And Negatives About Trading And Investing.
Advantages Of Trading:-1). If We Start Trading We Does'nt Have To Wait For Long Period Of Time To Gain Money. 2). We Can Gain Instant Money In Only One Day Or Few Days Or Weeks Depending On Us. 3). Huge Information And Analysis Is Not Required As We Are Only Buying Shares Or Equities For a Short Period Of Time And We Only Have To Analyse Charts And Patterns.
Disadvantages Of Trading:- 1). There Is High Risk In Trading Comparitively As Good Stocks Always Rises In Long Period Of Time But We Should Be Careful While Trading Or Analyzing Charts As All Good Stocks And Large Companies May Fall Heavily In Short Period Of Time And Make Huge Losses. 2). Market Fluctuates Very Highly And Contains High Volatility Which Would Be Confusing And Dangerous For Beginner Traders. 3). Trading Could Be Highly Stressful As We Have To Give Our Regular Time To Trading And We Have To Focus Regularly On Trading Rather Then Our Other Works.
Advantages Of Investing;-1). Investing Is Very Less Risky Because a Stock Fluctuates Every Second But In a Long Period Of Time a Good Stock Always Rises Highly. 2). Anyone Can Start Investing In Basic Instruments Like Index Funds And Mutual Funds About Which You Can Read In My Other BlogPosts Which Is Very Easy And Does not Require Much Analysis. 3).It Can Multiply Our Money And Give Very High Returns And If We Start Investing At Early Age We Can Secure Our Future And Retire Happily at Age Of Almost 45 or 50 As We Would Have Huge Amount Of Money Which Also Could Be 5 or 10 Crores If Money Us Invested In Good Stocks And Wisely.
Disadvantages Of Investing:-1). There Is Only One Disadvantage Of Investing Is That We Have To Wait Patiently For Long Term As We Are Planning For Retirement But If Patience Is Shown This Disadvantage Could Turn Into Advantage.
So As Conclusion We Can Conclude That It Depends On Your Condition as Trading Is More Sufficient For People Who Have Much Free Time And Have Extra Money For Trade As We Could Suffer Huge Losses When We Are Beginners And Investing Is Sufficient For People Who Want To Gain Huge Money And Secure Their Future And Live a Less Stressful And Happy Life Without Risks And Tensions.
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