Trading vs Investing, what is best? – Tunerain24

Trading vs Investing, what is best?

Trading vs Investing, what is best?

      Trading vs Investing, what is best?

Trading versus investing these words get,intermingled quite a bit so I’m going to.just discuss how I would define them.that way as you do further research you,can kind of differentiate what people.may or may not be talking about before, I get into really defining anything.

I just want to start kind of at the top of the pyramid and that is what’s the purpose what is what’s this all about trading and investing the market all you know,all these terms at the end of the day.everything is about you know making. money that’s the purpose of the market.

so whether you are like I said trading.or investing both camps both strategies,have the same goal but the big differentiator of these two has to do,with time so yes both groups of people .both groups of strategies they want to ,they want to make money but it’s all about the time that they’re looking to make money within now even within this
you know as I try to define time this is tricky in and of itself .

so you know my kind of disclaimer upfront this is just an estimation on my part there is no you know line in the sand that says well as.soon as you cross this number you are ,officially an investor or if you don’t cross this line then that makes you a traitor there’s nothing like that this is all just an estimation but the big thing I want to try to get across here is it’s all based on time it’s based on.

how soon how not soon are you looking to.actually you know buy and sell whatever,your trading whether that be stocks or currencies or commodities or you know, futures or options you know at the end .of the day it’s all about time but the,one thing that both of these have in ,common is yeah both camps want to make.

Mmoney so that’s why a lot of times you, know the terms do get intermingled another because they do have know big relationship together so , let’s just first start talking about investing so investing in my mind is five years more than five years if you are buying.something and saying yeah you know maybe.

I’ll sell that in like five years then,to me you are just a flat-out long-term.investor again make your thing in five,years I think it’d be like two or three.year that’s fine like I said these are,just none of this is some sort of.official statistic in my mind though a,true investor somebody that believes in,something long-term is going to be you,know five years or more me for example  you know.

I have my retirement accounts I,have you know an IRA and all that good .stuff and that you know I always make the joke is yeah I buy and I’ll check,I’ll check again in like years for me ,that I’m an investor in those accounts I don’t care I don’t check the prices.

Every day I believe that coca-cola that ,Pepsi that Apple that you know Honeywell.that you know all those big McDonald’s I,believe that they’re going to be around,for the long haul so I’m not going to be,checking those every single day let .alone every single you know a few  minutes or anything like that so that is what an investing is you are holding on. to an asset for I’d say at least five years.

But definitely multiple years .whether that’s one or two or three years ,all right you know we’re kind of ,splitting hairs but you know you were,holding for a long time and you know you.don’t care and I mean don’t care in the ,sense of you know you’re not going to be,checking the price every single day or every single half-an-hour or heck probably not even every single week.

Because you’re in it for the long haul,you are investing now the next camp gets.complicated not the rice there’s a
,little bit more to this next camp and,that is training because trading has a.couple different kind of family members
but in my mind trading is anything less,than five years and I could see some.people totally wait that’s crazy well .like

I said Trading is broken down into,a couple more families here that you .need to look into the first is swing ,trading maybe you’ve heard that term ,swing trading is where you could very ,well say you know what I’m going to get ,this because I believe within the next .year and a half or maybe two years this is going to happen which is going to cause that to happen which is then going to cause values to go but you know .

I’m thinking that’ll happen within the next two years when that event happens I want to get out so that’s still not really’re not in it for the long haul it’s still a trade you have some sort of idea .you have some sort of plan of action .where you think that within you know a .year a year and a half two years.something is going to happen which is,going to cause values to go up and when,that event happens you’re getting out.that is not you know me saying.

I don’t care I’m not going to check I’ll check back in years I’ll check back in  ,years big difference there so swing trade now swing trading can also be for ,just a few weeks you know it could be so ,few years or a few weeks the same you know the same concept up here yeah.

I think some event is going to happen you ,know three weeks from now and when that event happens I think that’s going to cause the price to go up at which time, I will look to sell okay that’s definitely not long-term but it’s definitely a lot .you know smaller than a few years but .point being you are not looking for the .long haul you are looking for some event.

where you’re going to be holding for ,awhile but it’s not anywhere close to .what an investor would be doing and the big separator here is then what the,other family member of trading and that ,is day trading maybe you’ve heard of day.traders day trading day trades and in my ,mind that’s anything less than a day.

so if you are buying and then you’re ,thinking no I think some events going to happen minutes from now and then I’ going to sell that is a day trader if ,you think you know I’m going to buy and

I hope that I can sell you know within,five minutes from now for more that is a  day trader if you’re buying and saying. you know I’m going to hold for like two hours and then I’m going to sell that is a day trader when it’s all happening .within the same day and I suppose.

I could get stretched to maybe two or  three days but in a very compact amount of time you are definitely a day are day trading and that’s the big .difference so when people say hey I’m ,looking for you know a thousand dollars .to invest can you help me you know my channel is all about trading so if you’re looking to invest $ , in my
mind that’s saying well then that’s,because you want to you know hold on to that for retirement itself like that and,

I’m sure there’s plenty of other good .better channels out there than mine ,because I’m focusing on trading but if ,you mean investing a thousand dollars in terms of we I want to you know put in the market and then I want to try to sell it next week well you’re not really.

using the right terminology you are trading and you’re specifically looking ,to swing trade if you’re looking to hold for a few weeks or whatever so you know those are the big differences it’s it’s all about time whether or not you’re a swing trader or a day trader you know ,that’s going to depend on what you’re trying to do but you know if you’re in,the market and if you’re looking and,doing research now.

you know I want to be an investor but you’re you’re defining an investor as you know buying and .selling multiple times in a week or multiple times in a month well you know .you’re going to have your prime not going to get the results in the search engines and all that stuff you want,because you know you’re going to be looking for and if you’re type in investing you’re going to get long term ,type things that might not pertain to.

your situation so just keep that in mind ,the difference between investing and trading it has nothing to do yes both  .want to make money it just has to do with how fast or how slow and what sorts of amounts of money you want to make and ,then trading how are you trading how,fast you want to make that money that’s .going to dictate whether it’s swing or day trading so hopefully this helps hopefully this kind of you know puts a good fence between the term investing. and trading .

Because I see it all the time and I’ll be honest like I said I see it all the time so I just want it instead of having to always type up the difference now I can just link people to ,this video and I’ve just made my process that much more efficient and I like to be as efficient as possible so hopefully. this helps if you have any questions definitely leave those in the comment ,section below I always do read the comments I will respond to them and if you have any other suggestions to kind of these basic type videos please let me,

Know I did a video not too long ago ,talking about how the stock market works.where I admitted in that video I had no,plans of doing it but because people.left comments it you know sparked an,idea oh yeah I should be doing a cover that so same principle here if,you have any suggestions or questions,that I’ve always kind of nagged at you.feel free to leave those in the comment,section below and I’ll see what I can terms of a video so check out the channel check out me on social media.

Clay trader comm is my site and,hopefully at the end of the day you,thanks for Showing this post.


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