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Dudeperfect
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February 10, 2017, 04:41:11 AM |
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According to me the fundamental difference between trading and investing is the term associated with it. Any short term buying or selling activity is trading and any long term buying selling activity with the intention to earn profits in the long term is an investment. Usually, a trading has lower capital but with more frequency and in investing large capital is invested with lesser frequency.
If you talk about legit long term investments, then these will yield you a low amount calculated in percentages, so yes, in order to up your potential profits, you have to come over with a significant initial investment capital. That's why a lot people with a small initial balance jump into altcoin trading due to the heavy volatility where 50% price jumps aren't anything new. But we all know how risky that is.... One can take and hold large positions even with the small capital through the leverage feature in which he can earn good profits in small movements on the price chart so it is not necessary to have large capital in order to earn the large profit. In such cases, trader can lose 100% of his capital if there is absence of stop loss so taking extreme precaution is must Leverage is a killing feature I mean, in a more or less literal sense of the word. It could quickly kill your account, and ultimately, if you continue to use it, that will happen unless you have reliable insider info (which is when using leverage is fully justified). I think many have read here the story of a guy who lost 600 bitcoins while shorting. He was trading using borrowed money, and most likely, at a high leverage value at that, full of exceptions to make hefty profits. The same could happen to you too I can completely understand this as I have lost my 100% capital while using leverage but as I am aware of this feature, I usually put the very low amount in trade having high leverage so I have also made good profits using it. Alternatively, no matter how much profits you have, leverage is not affordable for the long term. It kills profits with overnight charges so it is basically useful (yet dangerous) for day trades. i don't think that leverage is a good solving problem for every people, because we need to learn more about leverage itself so we can use the leverage for save. i heard about leverage in forex trading and i really afraid to have leverage in trading especially in forex because i can imagine if i have to lost all of my money in trading. i think its better to do ordinary trading like usual and i think its really safe for us if we only have few info in trading. No doubt that leverage is like a sword but if we learn how to use it effectively then it's not less than a roller coaster for our capital. Yes, people lose money due to lack of knowledge of leverage but at the same time, experts are using it to multiply their profits. Leverage is a tool to multiply what we do, if we can make profit in simple trades then leverage will multiply the profit and the same in the case of loss. |
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Etaurith
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February 17, 2017, 12:21:21 PM
Last edit: February 17, 2017, 12:34:21 PM by Etaurith |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
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Pattart
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February 17, 2017, 01:27:38 PM |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
investment may take the form many types, while trading can be categorized as short-term investments. because you make a purchase and then wait some time until prices rose and then sell it for a profit |
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cotton ball
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February 17, 2017, 02:13:47 PM |
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There is no authentic difference between both of trading and investing, just different definitions for deposit of money.
Trading is an active investment, where we do trade within time tends to be short, pure risk hanging by us. Investments other than trading is passive because we entrust money to be managed by someone else's system, and it has a double risk.
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Erza
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February 18, 2017, 03:55:36 AM |
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There is no authentic difference between both of trading and investing, just different definitions for deposit of money.
Trading is an active investment, where we do trade within time tends to be short, pure risk hanging by us. Investments other than trading is passive because we entrust money to be managed by someone else's system, and it has a double risk.
But if you compare of both side. Trading by ourselves will sure have a lower risk than investment and of course the profit will be lower too. By investing you will get higher profit sometime but the risk is higher too. And mostly by investing on gambling site you will probably get some profit because in a klong run house will always win |
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sunsilk
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February 18, 2017, 05:01:35 AM |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
Investing is also considered as something that keeps on giving you profit passively and that's for doing nothing just like depositing into casino's bankroll or buying a real estate. Yes trading, is simple as that. You'll buy today and just hold it for a longer or shorter time and when you see you got interest for selling it, that's profit. |
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coynedterm
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February 18, 2017, 05:40:35 AM |
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Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
Both of these type of investment have the difference of like sky and ground but if you will do investment in such things than surely you will loss of all of your principal in both the two . Investment in any project is results into profit or loss according to the success of the project if you will go for the trading then the samethings happened with the trading that how much time this will take to get famous for a altcoin or coin to get success to make more and more user to grow its price. So indirectly both of them are related but in actual , if you will do your best in trading then you can make much profit than in direct investment . |
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thunderbitz2717
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February 18, 2017, 09:41:41 AM |
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Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
The difference between Trading and Investing was, in trading you are using analysis, while doing trade, you monitor the price value of the coin on which you thing is going to increase or decrease the price then you can set buy order and sell order. While Investing, you are choosing a business where you think it can multiply your capital in just a matter of short time only which the analysis is also a part of investing too. |
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icecube45
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Merit: 1000
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February 18, 2017, 10:24:19 AM |
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Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
The difference between Trading and Investing was, in trading you are using analysis, while doing trade, you monitor the price value of the coin on which you thing is going to increase or decrease the price then you can set buy order and sell order. While Investing, you are choosing a business where you think it can multiply your capital in just a matter of short time only which the analysis is also a part of investing too. Yes very true, in the trade we should see the development of the value to make a profit, and in investment we see the development a place we invest to make a profit. In addition to other differences are investing for the long term, while trade in the short term. Both require an analysis to get profit. |
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Zadicar
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Merit: 1020
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February 18, 2017, 10:51:00 AM |
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Regarding investing and Trading i could say that theres no difference i guess since when you do trading you are investing out your money which means its still an investment because anything that you risk to earn money could be considered investment.
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robocop3
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February 18, 2017, 11:20:39 AM |
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Investments are buy and hold for a long term he can get his profit after passing through a long period. While trading is one way to invest where traders invest their money in a short period of time he had to be updated to determine the fluctuations of the price of Bitcoin and get the benefit from fluctuations Bitcoin is increased .
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BitcoinPC
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February 19, 2017, 12:25:47 PM |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
Yeah because trading is a short term transaction between you and somebody and like buying and selling of things you purchased or capitalized while investing is a long process to earn money. Both involves risk and needs some good vision to earn good. |
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Xester
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February 19, 2017, 12:46:49 PM |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
Yeah because trading is a short term transaction between you and somebody and like buying and selling of things you purchased or capitalized while investing is a long process to earn money. Both involves risk and needs some good vision to earn good. That is a wrong perception of what is trading and what is investment. Trading in itself is a form of investment that needs capital but it differs from other kinds of investment since you will need to play it using your skills and your time. Trading is a kind of investment that needs capital + time +skills. Other investments are just boring kind of investments that doesnt need you to work but just wait for ROI but this kinds of investments are scams. |
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Catswold
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February 19, 2017, 12:54:20 PM |
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When you make an investment you purchase something and wait for the worth tot rise.
With a trade you buy and sell things to make profit.
Yeah because trading is a short term transaction between you and somebody and like buying and selling of things you purchased or capitalized while investing is a long process to earn money. Both involves risk and needs some good vision to earn good. That is a wrong perception of what is trading and what is investment. Trading in itself is a form of investment that needs capital but it differs from other kinds of investment since you will need to play it using your skills and your time. Trading is a kind of investment that needs capital + time +skills. Other investments are just boring kind of investments that doesnt need you to work but just wait for ROI but this kinds of investments are scams. Yes in other form of investments you never know what will be the end result and you don't have any control on your funds but in trading you can control your funds by taking a right action at a right time and your decision will determine your profits. |
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boyptc
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February 19, 2017, 01:02:10 PM |
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Regarding investing and Trading i could say that theres no difference i guess since when you do trading you are investing out your money which means its still an investment because anything that you risk to earn money could be considered investment.
This is what I'm thinking too but there are some people that are saying that trading is very different from investing. They are thinknig that investment are just with passive income and you don't have to do anything with it. But I really think that trading is a type of investment so I guess they are just the same and they both good. |
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finity
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February 19, 2017, 07:11:12 PM |
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Regarding investing and Trading i could say that theres no difference i guess since when you do trading you are investing out your money which means its still an investment because anything that you risk to earn money could be considered investment.
This is what I'm thinking too but there are some people that are saying that trading is very different from investing. They are thinknig that investment are just with passive income and you don't have to do anything with it. But I really think that trading is a type of investment so I guess they are just the same and they both good. I think putting money in trading is also one sort of investment as you are taking risk of putting your money into something whose result is unknown to you either you make profits or loss but I think investing in trading is better then investing it in any hyips or cloud mining sites. |
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cramcram21
Sr. Member
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Activity: 854
Merit: 251
★777Coin.com★ Fun BTC Casino!
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February 20, 2017, 07:01:38 AM |
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for my own opinion trading is just like an investment,
But if you are going to compare it to investing in HYIP then,
it will definitely be a different scenario.
For example in trading you have to buy some thing and hope for the price to go up then sell it,
While in investing in HYIP you will just have to wait for your income.
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dunfida
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Merit: 1129
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February 20, 2017, 07:57:13 AM |
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for my own opinion trading is just like an investment,
But if you are going to compare it to investing in HYIP then,
it will definitely be a different scenario.
For example in trading you have to buy some thing and hope for the price to go up then sell it,
While in investing in HYIP you will just have to wait for your income.
Its indeed and investment since you put or risk your money to earn money but the difference of it among other things that you will really need to work and analysis for you to be profitable on trading because if you trade blindly then it would be considered gambling already. |
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Rahar02
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February 20, 2017, 08:50:38 AM |
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both of them is difference, but to make it easier to understand, when you investing, you trust your money to someone and you don't need and can't do anything with your money until certain period, when you trading, you used your skill and knowledge to generate profit and you need to some work in trading, you need to pay attention to the chart and keep the updated news everyday
so when investing you depend on somebody else when trading you depend on yourself
Great explanation, simple but straight to the point. I consider trading and investment are the same, because when I put my money into trading, it is a kind of investment too. For me, both are risky but slightly different about how to make sure the outcome will be good. Investment in my point of view is whenever I want to doubled my capital, whether that's trading, start my own business, buy and hold gold or bitcoin. |
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gabmen
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February 20, 2017, 11:05:36 AM |
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both of them is difference, but to make it easier to understand, when you investing, you trust your money to someone and you don't need and can't do anything with your money until certain period, when you trading, you used your skill and knowledge to generate profit and you need to some work in trading, you need to pay attention to the chart and keep the updated news everyday
so when investing you depend on somebody else when trading you depend on yourself
Great explanation, simple but straight to the point. I consider trading and investment are the same, because when I put my money into trading, it is a kind of investment too. For me, both are risky but slightly different about how to make sure the outcome will be good. Investment in my point of view is whenever I want to doubled my capital, whether that's trading, start my own business, buy and hold gold or bitcoin. Well good point for both of you there. For me, i consider investments as more on the long term side while trading is for daily or weekly ventures. Investing for me is when i put money on a prospected spurce of income which may take years. Similar to as you've said, starting a business. While when im trading, as per experience, i only deal with btc and other alt coins |
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