Stock Trading and Stock Investment
Some of us use the term stock "investment" and stock "trading". Transactions also require investment. But if you look closely, the two terms "trading" and "investing" will appear in different lights and different connotations.
While trading is a fast and short process, "investing" means a long process that includes patience and perseverance. We use real estate more than real estate transactions, because real estate means "buying and holding" real estate for a significant amount of time. Real estate can not be traded like day-traded stocks. Similarly, we do not say "days of investment." We say day trading. The transaction involves dealing in a short time. The waiting element is inherent in the investment. You invest in your children's education
While stock trading seems to be an enticing option to make money fast, most people fail to achieve their goals and become rich in a short time.
It must be pointed out, however, that the reason for not making money is not the nature of the stock transaction itself. They lay on the trader. Stock trading, or, for this case, day trading is a full-time business. It is not gambling. Stock trading is a very unpredictable business. If it can be predicted by the rules, everyone will follow them and become rich. Of course, there are some basic rules that must be learned and followed to start trading stocks. But in the end it's like a cricket game. The player does not know at what angle, at what angle or at what speed or height.
In any other business or game situation, you need to learn the inner and outer things of stock trading. Successful cricket players develop intuition to deal with approaching cricket. Stock trading requires time and money to acquire knowledge, skills and experience. These intellectual assets can not be obtained at night. These virtues are necessary to develop a quick and strategic intuition to deal with emergencies such as stock price rise or fall. It must be noted that intuition is where the rules fail.
In order to be a successful stock trader, you need to have a killer instinct and an eagle's eye. You need to be disciplined and resourceful. You need to learn to anticipate trends and think ahead. Stock trading can not be accomplished by borrowing knowledge or tips, and tips from experts, gurus and experts. Equity Investment
As mentioned earlier, equity investment implies a long-term process.
You have specific goals to achieve. Although traders try to buy stocks, when they think the market has reached the minimum or sell them, the market through the peak, stock investors usually will not be such fluctuations. It must also be noted that, due to market volatility is unpredictable, a considerable number of traders suffer losses.
On the other hand, stock investors wait patiently for weeks, months, sometimes even years to achieve their goals. In a study of the performance of Standard & Poor's 500 years between 1926 and 1987, the Standard & Poor's 500 returned an average of about 9.44% over the 62-year period from 1926 to the end of 1987. Thus, "
has some time to test strategies to build solid stock portfolios, the overall direction of which has been on the rise and is likely to continue in this direction unless
o Always allocate a certain amount of normal investment, and hold them as long as they continue to grow
o Re-invest your earnings to gain the benefits of compound interest
o Do not put all your eggs in the market at all
o Start investing. Do not wait for a better time.