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Don't make this mistake about investing and trading (learn to earn) 3

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Written by   29
1 year ago

Some humans may think that these two terms are the same, which is similar but not the same. So, if you don't know the differences between trading and investing, you are welcomed to this article where I gonna talk about it but on my way, what I know. Also, if you understand why they aren't the same thing, you are welcomed too.

Okay, let's start by investing...

Let's say that you save 1.000$ and now you want to invest them somewhere. The best way is to buy some shares of some perspective or stable company such as Tesla or Apple. Let's say Tesla's share price is 100$ each. That means you have 10 of Tesla's shares. After a few years, Tesla launched a few more projects, and now the price of Tesla's share is 230$ and you have 2300$ which you can sell or wait for the better price. Of course, there are many types of investments and I can't cover them all at once but I used investments in shares because it's similar to trading.

Trading is something different, it's a job

A trader who has 1.000$ can also buy 10 Teslas shares but he will not wait that long to sell them. Of course, there are many types of trading also just like investing. We can trade on long terms and short but long term trading is more like investing. However, traders buy and sell shares, currencies, and everything else to sell as soon as possible. Buying and selling often is trading. Buying for a long time is investing.

This is a small difference which is similar and I wanted to explain how to split trading and investing, so I hope it's a little bit explained.

Thanks for your priceless attention and have a good life!

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