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Introduction
I feel that this article provides the most valuable information currently available for your search of: investing and trading diffrences. I hope you enjoy reading it as much as I enjoy providing it for you...
The Difference Between Investing and Trading
Rob Hall
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk
one is prepared to take, and the commitment one can make to monitor
the investments dictate the strategy of whether to invest or trade.
Investing
Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial
appreciation over 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 referred to as the "buy and hold" strategy.
Real estate would be another example of investing, unless the property is purchased for quick flipping.
Jewelry, art, stamps, and collectibles are still other examples of investing where they are kept for a long time in the hope their value appreciates.
Trading
Trading is also investing but the time frame for a return on that investment is a much shorter period, usually a matter of a few days or weeks.
The most obvious example would be day trading where a trader is in and out of a market the same day.
Still other trading takes place over a period from a few days to a few weeks.
Most trading takes place with individual stocks and commodities, with commodity markets being the most predominant vehicle.
Rob Hall is a successful futures trader, President & CEO of his own investment firm,
and international author. His books on learning to trade futures markets
are distributed through Sumas International Sales Ltd. View them at
http://www.futuresopps.com/Comm.htm
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Disclaimer
I am not a registered investment advisor or broker and do not purport to tell or suggest which securities you should buy or sell or which trading products you should buy.
You should always check with your licensed financial advisor and your tax advisor to determine the suitability of any investment or product.
You understand and acknowledge that there is a very high degree of risk in trading securities.
I assume no responsibility or liability for your trading and investment results or product purchasing decisions.
All information on the Stock Market Trading Tools website and other linked sites is provided for informational and educational purposes only and should not be construed as investment or purchasing advice.
You should not rely solely on the information on the Stock Market Trading Tools website or other linked sites in making any investment or product purchasing decision. Rather, you should use the information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments or trading products.
This website contains links to third party sites and by providing a link to those sites it does not imply any endorsement. In no event shall Stock Market Trading Tools or its representatives be liable, directly or indirectly, to anyone for any damage or loss arising from or occasioned by the creation, use or reliance on the third party sites or the information, advertising, products, resources or material accessed through Stock Market Trading Tools. |
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