Read on Twitter
Struggling on choosing whether to invest or trade stocks?
Investing and Trading are NOT the same.
See why?
*THREAD*
Investing and Trading are NOT the same.
See why?
*THREAD*
Investing:
- Buying a stock of a carefully researched company
- Strategy is to hold for years or even decades
Trading:
- Buying and holding stocks for a short period of time
- Uses market fluctuations to their advantage
- Buying a stock of a carefully researched company
- Strategy is to hold for years or even decades
Trading:
- Buying and holding stocks for a short period of time
- Uses market fluctuations to their advantage
Why choose one over the other?
Investing
Pros:
- Less risk (time is on your side)
- Over the last century, the stock market has had an average annual return rate of about 9% (returns listed)
Cons:
- Long Term wealth building
- Market is volitile
Investing
Pros:
- Less risk (time is on your side)
- Over the last century, the stock market has had an average annual return rate of about 9% (returns listed)
Cons:
- Long Term wealth building
- Market is volitile
Trading
Pros:
- Possibility for good returns
- Convenient
Cons:
- More risky (easy losses)
- Trading fees and taxes can add up
Pros:
- Possibility for good returns
- Convenient
Cons:
- More risky (easy losses)
- Trading fees and taxes can add up
