1. TIME - Traders buy and sell on a short term time frame. Their holding period is from a few days to a week as opposed to investors' time horizon of months to decades (think warren buffett).
2. PRICE - Traders buy or sell based on price action. Traders usually dont care about the price per se, as long as they see higher prices coming by way of price action then they take positions as needed. Investors are more concerned about price levels, they look at valuations and ratios of companies as businesses and their potential over the long run.
If you have unlimited capital and time, i suggest you go for long term investing just like Warren Buffet but otherwise, trading is my favored way to grow capital. As proof, just look at the Dow Jones Industrial Average, as of this writing, it is approximately where it was A DECADE AGO! now if you invested in those "blue chips" a decade ago, you would've still lost money because of inflation..
wait for my next post on stockmarket investing, we're getting hot!
If you have unlimited capital and time, i suggest you go for long term investing just like Warren Buffet but otherwise, trading is my favored way to grow capital. As proof, just look at the Dow Jones Industrial Average, as of this writing, it is approximately where it was A DECADE AGO! now if you invested in those "blue chips" a decade ago, you would've still lost money because of inflation..
wait for my next post on stockmarket investing, we're getting hot!
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