Trading and long-term investing

[Cryptmuster]

I think what you say is true for investing, not necessarily for trading.


Unlike investing, with knowledge and experience we are almost certain to make a profit and succeed one day if we put in the effort without stopping. But with trading, it depends. Knowledge, experience and skills are not enough to guarantee your success. Trading requires much more than that, such as psychological control, discipline and adaptability, and not everyone can do those things. Even experienced traders sometimes lose control of their emotions and fail to maintain discipline, let alone traders with just 3 or 5 years of experience.


It is not for nothing that people say, trading is not for everyone. So if we are not suitable, stop before it is too late.

Investing isn't as simple as many people think, either, because you need to know when to buy and when to sell. Only a long-term hold can work for an investor even if they're a weak analyst, they'll buy and hold an asset for 10 years or even longer. After that selling will be much easier, because the asset's price will likely rise enough for them to make a profit anyway. If you buy and sell every few years, however things will be much more complicated, and I suspect the profit will be smaller, because choosing optimal buy and sell points is difficult, and there will be errors and lost profits.

[bettercrypto]

I think I'll clarify based on my understanding that investing isn't without its downsides. The risk of loss remains, as this is a volatile market, but not as severe as trading. In investing, the risk of loss remains, but as long as you don't close out your accumulation in that asset, the opportunity for recovery or a return to profit is very possible. I've seen most investors, especially beginners, stop their accumulation when they see a decline, when in fact, it's just a correction the market is making before rising higher.
The bottom line is that investing also carries risks, but as long as you invest your money in reliable assets and don't close out when the market drops, your losses can still be recovered.

Once you invest, it means you are accepting risk, whether long term or short term. Because no investment is completely safe and risk-free, and there is no way to guarantee absolute returns.

However, long term investments are generally lower risk. Because with long term investments, we can avoid the unpredictable fluctuations of short term markets. That way, we can minimize losses and increase our chances of making big profits in the future. Meanwhile, short term investing or trading is riskier because market fluctuations are difficult to predict, making risk management difficult.

Thank you for completing my idea above, my friend. This also means that it's better for beginners to invest rather than trade. I understand that everyone is free to make their own choices, but long-term investment is more recommended.

Furthermore, I would also say that you need to have a high level of patience and a strong mentality. In most cases, investors who fail or quit midway are usually those who lack confidence and are afraid when the market experiences a downturn. For me, that's actually a golden opportunity for me to increase my accumulation rather than stop.

For total beginners in this crypto space, it’s really not advisable to tell them to start doing actual trades right away when they don’t know anything yet about crypto trading. Of course, you’re still a newbie no different from a baby who should only be drinking milk and shouldn’t be fed meat right away.  Same goes here in trading. The problem with others is that even if they’re just newbies, they’re extremely greedy and already want to experience big profits from trading. Their brains aren’t in their heads anymore; it’s like they’ve fallen down to their feet.

Because even if they’re just beginners, they could simply invest and hold for the long term while they study crypto trading first. That’s what they should be doing at the start but most of the time, that’s not what happens.

[BlackBaron]

I think what you say is true for investing, not necessarily for trading.


Unlike investing, with knowledge and experience we are almost certain to make a profit and succeed one day if we put in the effort without stopping. But with trading, it depends. Knowledge, experience and skills are not enough to guarantee your success. Trading requires much more than that, such as psychological control, discipline and adaptability, and not everyone can do those things. Even experienced traders sometimes lose control of their emotions and fail to maintain discipline, let alone traders with just 3 or 5 years of experience.


It is not for nothing that people say, trading is not for everyone. So if we are not suitable, stop before it is too late.

Investing isn't as simple as many people think, either, because you need to know when to buy and when to sell. Only a long-term hold can work for an investor even if they're a weak analyst, they'll buy and hold an asset for 10 years or even longer. After that selling will be much easier, because the asset's price will likely rise enough for them to make a profit anyway. If you buy and sell every few years, however things will be much more complicated, and I suspect the profit will be smaller, because choosing optimal buy and sell points is difficult, and there will be errors and lost profits.

Neither is that simple, but I agree that in trading, we need more skills to start making money. Sometimes, luck is also involved.

In investing, I see it as something more comfortable. I mean, we just hold and don't have to fight against time to constantly monitor the price. Because in trading, and if we trade with shorter timeframes, we have to focus on the monitor screen (or frequently check the price), even if there's a TP/SL strategy. But still, we usually keep watching the price, and that's what makes me a little uncomfortable.

[GigaBit]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Trading and investing are different. In trading, it is usually sold with a small profit. On the other hand, investing is usually long-term. To trade, an investor needs to acquire proper knowledge, on the other hand, in investing, even if he does not have sufficient knowledge, he can still invest. Through trading, a person can face both quick profits and losses. Trading is usually best for earning cash, on the other hand, investing is reliable for long-term assets.

[hafiztalha]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Trading and investing are different. In trading, it is usually sold with a small profit. On the other hand, investing is usually long-term. To trade, an investor needs to acquire proper knowledge, on the other hand, in investing, even if he does not have sufficient knowledge, he can still invest. Through trading, a person can face both quick profits and losses. Trading is usually best for earning cash, on the other hand, investing is reliable for long-term assets.

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down . If you are invest for the Years you will be ably to get the profit because Bitcoin price will go up and Bitcoin is best for the all people who like online currency .

[masulum]

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down . If you are invest for the Years you will be ably to get the profit because Bitcoin price will go up and Bitcoin is best for the all people who like online currency .

Both long terms of short terms investors it's okay as far as they are able to maximized his profits as their investment choice. Become a long term, mean you have to buy and hold whatever the market happens. This need a steady income to keep your investment getting growth. While short investors can take advantage from the volatility to take profits. of course every choice has a risk. long investment can be losses more money if the market not the same as everyone prediction. so, never judge if crypto just for long terms investor only, as far as a trader have good risk management and emotion control, it should be safe for invest. the key is discipline. 

[Finebone]

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down . If you are invest for the Years you will be ably to get the profit because Bitcoin price will go up and Bitcoin is best for the all people who like online currency .

Both long terms of short terms investors it's okay as far as they are able to maximized his profits as their investment choice. Become a long term, mean you have to buy and hold whatever the market happens. This need a steady income to keep your investment getting growth. While short investors can take advantage from the volatility to take profits. of course every choice has a risk. long investment can be losses more money if the market not the same as everyone prediction. so, never judge if crypto just for long terms investor only, as far as a trader have good risk management and emotion control, it should be safe for invest. the key is discipline. 

We can't deny that their is a symptom of risk in both trading and long term investors, but the actual fact is that they don't carries the same level of risk.  Anything that can makes you a whole lot of money very quick, can also makes you lose a lot of money very fast, but why trading is more risky is because you might have the required knowledge in the field, but if you can't control your emotions,or you are not patient or you can't manage your risk properly by trading with what you can afford to lose, the likelihood of you losing even more is quite high, wether you have good knowledge on technical and fundamental analysis or not.
But with Bitcoin investment, you just have to buy and hold without doing much, the only thing that is required is to make sure you have an emergency funds in place, just in case of emergency, so that you would not have to sell or temper with your Bitcoin investment when you have a real live emergency that may have made you sell or temper with it.

[liasbaa]

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down . If you are invest for the Years you will be ably to get the profit because Bitcoin price will go up and Bitcoin is best for the all people who like online currency .

Both long terms of short terms investors it's okay as far as they are able to maximized his profits as their investment choice. Become a long term, mean you have to buy and hold whatever the market happens. This need a steady income to keep your investment getting growth. While short investors can take advantage from the volatility to take profits. of course every choice has a risk. long investment can be losses more money if the market not the same as everyone prediction. so, never judge if crypto just for long terms investor only, as far as a trader have good risk management and emotion control, it should be safe for invest. the key is discipline.  

Your analysis is correct. There is risk in every case. Long-term investment or short-term trading but to reduce the risk to a large extent, you are advised to invest through discretionary income. Or for short term trading it is advisable to allocate the available funds that you can afford to lose. Experienced investors or traders will recommend this when giving you advice.

I think the risk for long term investment is relatively low. If you plan to invest in Bitcoin for the long term and can continuously accumulate Bitcoin for a four year cycle and also multiple cycle. Considering that the expectation of profit is the most valuable for us long term Bitcoin seems to me a more successful decision than trading.

If you understand risk management correctly and are experienced, you can make profits by trading crypto but even many experienced traders cannot predict the future of the market. As you said about the importance of discipline, patience and discipline are very important in every field of investment or trading.

[shawonngp]

There is no certainty anywhere, there is uncertainty everywhere, and you have to take risks based on this uncertainty. By understanding the difference between short-term risk and long-term risk, you have to take risks according to your ability and achieve success. But when someone does not want to take any kind of risk, then with this risk-free thinking, he will never be able to reach any good financial level. Trading, investing, business, there will be risks in everything, but you have to know how to manage and you have to take risks correctly.

Yes, you are right. Both trading and investing have risks. But the risk in investing is less and the risk in trading is more. Because currently new traders do not want to learn trading. Trading is a learning subject. If you do not learn trading, it is much more risky. There is no difference between trading and gambling without learning. But if you learn trading, it is possible to reduce the risk.

It is not that investing or trading is completely uncertain. Both have risks but the level of risk is different. If you gain knowledge about risk correctly, it is possible to control big or small risks. Therefore, only if we can learn to deal with risk correctly, we can be financially successful.

Wherever you invest, with the hope of generating a profit, you must take on more or less risk, whether it's crypto trading or long-term investment. If you are investing in any business offline, of course, you have risk there, too. I think you need to learn not only by trading, but you also need to do a lot of research before investing, because if you invest in random coins or those that have no use case,  then you may lose your money, and even if you wait for a long time, the profit will not come. This is why trading is riskier, as you can potentially double your money in a single day. And you can lose it all. However, in the case of investment, your profit will come very slowly, so the risk here is relatively low.

[Bd officer]

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down . If you are invest for the Years you will be ably to get the profit because Bitcoin price will go up and Bitcoin is best for the all people who like online currency .

In fact, cryptocurrency refers to all currencies, so long-term investment is not suitable for all currencies, the most suitable currency for holding for a long time is Bitcoin. Now there are many stories, many have lost a lot of money by making short term investments or trading. But those who invested in Bitcoin in the past and held investments for a long time must have benefited, Bitcoin did not disappoint long-term holders. Now there is no guarantee of both trading and investing, both are risky, but the difference here is that trading is high risk but long term investment is less risky. Trading is not that easy, professional traders also face losses at times, so the best plan is to invest in Bitcoin and hold it for a long time.

[passwordnow]

However, in the case of investment, your profit will come very slowly, so the risk here is relatively low.

It's still the same, the risk will be the same whether you are long term or short term. But the greater gain is with the long term investment. I don't think that we can say that if an investment gives you a slower gain, then your risk is low. There are investments that are giving relatively low gains but the risk is still high. While this can differ like in crypto, stocks and other investments. So, it differs from all of the assets that we hold but that's the common thought we understand from those low potential gains investments, the risk is low but not always.

[cyberninja2]

Investing isn't as simple as many people think, either, because you need to know when to buy and when to sell. Only a long-term hold can work for an investor even if they're a weak analyst, they'll buy and hold an asset for 10 years or even longer. After that selling will be much easier, because the asset's price will likely rise enough for them to make a profit anyway. If you buy and sell every few years, however things will be much more complicated, and I suspect the profit will be smaller, because choosing optimal buy and sell points is difficult, and there will be errors and lost profits.

Indeed, nowadays when someone is aware of the investment issues that are on their mind investing is very easy even though they don't fully understand the origins of how to buy or sell at the right time. Once someone truly understands how they will feel that what they have been thinking is different when they actually experience or understand how to invest. Therefore to achieve profits from investing they must have consistency. Long-term investing will be very difficult for those who only want quick profits without understanding how to invest long-term whether for 5 or 10 years.

Although sometimes they don't have an emergency fund having one will make things easier regardless of whether they have already invested. They will certainly receive significant profits because many do it long-term and one that is often done by big investors whom we know with all their advantages both financially and mentally towards investing which requires a timeframe of at least 5 or 10 years.

[Cryptmuster]

Indeed, nowadays when someone is aware of the investment issues that are on their mind investing is very easy even though they don't fully understand the origins of how to buy or sell at the right time. Once someone truly understands how they will feel that what they have been thinking is different when they actually experience or understand how to invest. Therefore to achieve profits from investing they must have consistency. Long-term investing will be very difficult for those who only want quick profits without understanding how to invest long-term whether for 5 or 10 years.

Although sometimes they don't have an emergency fund having one will make things easier regardless of whether they have already invested. They will certainly receive significant profits because many do it long-term and one that is often done by big investors whom we know with all their advantages both financially and mentally towards investing which requires a timeframe of at least 5 or 10 years.

On the one hand, everything seems simple, but on the other hand, if you choose the entry point incorrectly, you may become a long term investor against your will. For example, look at how gold and other precious metals have risen recently. If an inexperienced investor starts buying gold now, they will most likely buy at the highs and end up being a forced investor for many years. Before this, gold went through a very long bear market, roughly about 10 years, before it reached a new all time high. I assume that people who are buying at the highs now, instead of buying during those previous 10 years, are making a big mistake, because after gold reaches its peak, it will enter another prolonged bear market that will also last a long time. And I think that during this period many inexperienced investors who will not be able to hold will end up selling at a loss.

[tvplus006]

Mostly Short term investors are losing money in cryptocurrency which is not best for cryptocurrency because cryptocurrency is best for long term investors and it will give high benefit to these kind of people. Cryptocurrency is not for people who want to invest for days or for weeks because Market is volatile and you could lose your all Money in that and you account could be wash . When market is going up you have greed and you are Investing all money and if you are Investing at high price and market went down...

The advantages of the stock market over investing in cryptocurrencies are obvious, as the stock market is regulated and accounts have insurance. In addition, you can earn income not only from the exchange value of the stock, but also by regularly receiving dividends. When investing in cryptocurrency, you need to be prepared for the fact that you can get not only a high profit, but also an equally high loss.

[Out of mind]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Trading and investing are different. In trading, it is usually sold with a small profit. On the other hand, investing is usually long-term. To trade, an investor needs to acquire proper knowledge, on the other hand, in investing, even if he does not have sufficient knowledge, he can still invest. Through trading, a person can face both quick profits and losses. Trading is usually best for earning cash, on the other hand, investing is reliable for long-term assets.

Yes, these two things are completely different. Trading is for short-term profit and investing is for long-term retention, which is more profitable. Of course, trading requires sufficient knowledge and experience. If you do not know how to analyze the market well, you will face losses in trading. And even if you do not have much experience in investing, if you can rely on your own skills and keep it for a long time, it will be better. It is possible to make quick profits through trading, but if you do not understand the market situation, you will definitely face losses. It is not easy to trade if you do not understand the market situation. And if you have money, investing will definitely be the most reliable and good plan. If you save it for the future, you can make much more profits.

[armanda90]

The advantages of the stock market over investing in cryptocurrencies are obvious, as the stock market is regulated and accounts have insurance. In addition, you can earn income not only from the exchange value of the stock, but also by regularly receiving dividends. When investing in cryptocurrency, you need to be prepared for the fact that you can get not only a high profit, but also an equally high loss.

The advantage side of stock behind your valuable assets increasing one day later if the project promising in other side you can regularly receiving dividends depend how much your stock investment. Be aware with investing at stock how easily manipulating exactly if investing at local stock with bad news how I faced much loss after investing at local stock.
Investing in cryptocurrency actually can receiving regularly income if stake the coins investment but every coins have difference return depend how long for staking, however stock price increasing not really high than cryptocurrency and I fully interested for investing in crypto than stock.

[Jaksonhard]

However, in the case of investment, your profit will come very slowly, so the risk here is relatively low.

It's still the same, the risk will be the same whether you are long term or short term. But the greater gain is with the long term investment. I don't think that we can say that if an investment gives you a slower gain, then your risk is low. There are investments that are giving relatively low gains but the risk is still high. While this can differ like in crypto, stocks and other investments. So, it differs from all of the assets that we hold but that's the common thought we understand from those low potential gains investments, the risk is low but not always.

Your point is incredibly valid. Simply because an investment is being held in the long term or grows at a slower rate does not mean the risk associated with it has decreased in value. A “safe” asset simply means that you are likely to earn a lower return on it; however, this does not eliminate the risk associated with that asset and its market conditions. On the other hand, long term investing in assets such as Cryptocurrency or Stock Market Investments provides an enormous potential to generate profit; however, it is important to recognize that the Assets themselves and not just the duration of the investment will determine the level of associated risk(s) with that Investment. Each investment behaves in its own unique way; therefore, the commonly held assumption that “lower gains have a lower associated risk” may not always be true; therefore, it is imperative to have an awareness of the investment up front and perform the attentiveness that is necessary prior to making any Investment decisions based upon Common Perceptions.

[WatChe]

Yes, these two things are completely different. Trading is for short-term profit and investing is for long-term retention, which is more profitable. Of course, trading requires sufficient knowledge and experience. If you do not know how to analyze the market well, you will face losses in trading. And even if you do not have much experience in investing, if you can rely on your own skills and keep it for a long time, it will be better. It is possible to make quick profits through trading, but if you do not understand the market situation, you will definitely face losses. It is not easy to trade if you do not understand the market situation. And if you have money, investing will definitely be the most reliable and good plan. If you save it for the future, you can make much more profits.

Trading is no doubt a risky thing and it's important to figure out that whether you can handle the risk associated with trading or not. The sooner your realise that whether you can continue trading or not, better it is for you. Even experienced trader find it difficult to handle wild fire of trading at times. I tried trading and quit that quite early because I figured out that it's not for me and switch to long term investing. The return given by long term investment is more guaranteed compared to profit you get in trading. Moreover investing for long term is hassle free compared to trading.

 

[TheUltraElite]

The advantages of the stock market over investing in cryptocurrencies are obvious, as the stock market is regulated and accounts have insurance. In addition, you can earn income not only from the exchange value of the stock, but also by regularly receiving dividends. When investing in cryptocurrency, you need to be prepared for the fact that you can get not only a high profit, but also an equally high loss.

Stocks have their own ball game, but experience in stocks can helpa new beginner in crypto understand how this market works quickly as compared to a person who have never traded on a speculative market before.

The people who have stocks held, will get dividends if the stock is big and is making profits. Usually these are like small payments which can be big if your capital is high. There is no such thing in crypto but price bouncing range is high in crypto.

Both have their own pros and cons, better to learn one at a time.

[fuguebtc]

Be aware with investing at stock how easily manipulating exactly if investing at local stock with bad news how I faced much loss after investing at local stock.

Manipulation is a part of the financial market, and it happens even more frequently in the cryptocurrency market. Unlike the stock market, the cryptocurrency market remain relatively free, with few regulations and not subject to strict control.

however stock price increasing not really high than cryptocurrency and I fully interested for investing in crypto than stock.

Overall, each market has its own advantages and disadvantages, and both have the potential to generate profit. But yes, cryptocurrencies offer much higher returns than stocks, and are also more accessible. That is why we choose crypto over stock or forex.