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Are you an Investor or a Trader?

Are you an Investor or a Trader
Investor or Trader
                                                            

Investor or Trader


This is a very important subject which you need to check within you as everybody has a different tendency and many of us like to achieve the things in the short go but to find the treasure your patience needs to be judged.
Good things take time.
Many of us are very confused between the two concepts. I have done my MBA Project from Religare Broking and during my 2 months of regular visits I have seen 100s of people come daily and do BTST (Buy today sell tomorrow), as well as many of them were swing traders but they called themselves as investors.
Investing is a different concept while trading is totally different. I appreciate investing but not trading.

Here we find the difference :


Investing 
Investing your money for longer-term, longterm considered for a period of more than a year.

Trading 
You just want to earn the swing profits from your money and you come out immediately from that trade either after booking profit or loss.

Investing 
Investing in buying the business or become the stakeholder in that company.

Trading 
Trading about buying the stock on a particular price and exit on the targeted price.

Investing 
To do investment in the company you need to understand the companies profile and their work properly.

Trading 
If you are a trader then you don't require to do anything with company business, you just interested in the price of that stock despite its business.

Investing 
The most important thing in investing is building a diversified and risk-free portfolio. Portfolio construction is an art as well as science and one needs to be very particular about our investing goals while building a portfolio.

Trading 
If you are a trader then you either you take BTST(Buy Today Sell Tomorrow) or STBT(Sell Today Buy Tomorrow) picks as well as you do swing and intraday trading for short term gains.

Investing
In investing your investment value can be appreciated along with the generation of wealth in the long run. For eg: People who bought Colgate in the year 2000 at Rs 76/per sh, can enjoy today the profit of approx 1400 Rs profit pe share so the value appreciated in 20 years is 1900% times.

Trading 
In trading your investment value is defined as nothing as the price is God in trading and as soon as you got 2 to 5 % profit in any stock, you wish to exit from that without knowing the future prospect of that company.

Investing 
Investing is buying stocks like you are buying the business of that company. You have to do value investing in the company after checking future prospects, continuous growth balance sheets, reduction of debts in continuous years, and potential of the company.

Trading
Trading is buying the stocks like you are buying the groceries for your household.

Investing
Investing is about to study the fundamental analysis of the company.

Trading
Trading is about to study the technical analysis of the company in the broader range.

Investing
High return with low risk

Trading
High return with high risk

Before proceeding further you need to check your interest and mindset of investing, don't make trades like an investor, and don't invest like a trader otherwise, you would be in trouble at the end of the day.

As per Warren Buffett "If you cannot hold any stock of 10 years then do not hold it for 10 minutes".

 















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I have started this blog to educate people regarding saving and investment of their hard-earned money wisely to become big, investing decisions play a very important role in our life to meet our retirement expenses and brighten our future.

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