Читать книгу The Ultimate Daytrading Guide: Invest Intelligently Step by Step And Earn Money With Stocks, CFD & Forex - HOMEMADE LOVING'S - Страница 7

If one looks at the differences between trading and investment, one immediately notices that the two positions diverge in several aspects. In order to communicate the differences clearly, you should ask yourself whether you know a famous investor. Many people who have been involved in various stock market transactions for some time will certainly answer this question with "YES". A big investor you probably know at least from hearing is Warren Buffet. He is THE investor role model and one of the richest people in the world. As a teenager he started to invest his money in shares - with success. His good intuition helped him to buy cheap shares and to sell them afterwards at a high price. Warren Buffet has set up a few rules for this very simple principle, which you should always follow if you want to invest successfully.

The first rule is never lose money.

Another one: Always remember the first rule. And the third rule is: You should only invest in companies whose activities you know and understand.

Another famous investor is George Soros. He is known as a hedge fund guru and has the best track record of any investment fund in the world. He finds financial markets chaotic. Accordingly, he thinks that most people tend to make emotional decisions. The relationship between stock prices, bond prices and currency prices with the people who trade in the securities, i.e. buy and sell, is therefore important. Rational and logical calculations, on the other hand, tend to be of secondary importance, since the emotional reactions of people are the basic determinants. Opportunities arise with him through a thorough investigation of the companies. The prevailing prejudices of investors influence market transactions, which in turn affect the economy.

You have now met two well-known investors. But can you also name a known trader? There are successful traders, but they are by no means famous. Someone who is a bit more involved with daytrading, of course, knows a few names from this scene. But ask the ignorant if they know a famous trader. To get to the bottom of this, you should know some basic differences between trading and investing.

First you should know the respective definition of the words. Investment means the long-term storage of financial resources (i.e. money) in tangible and intangible assets. We're talking about a bond here. Trading, on the other hand, means nothing other than trading. If you want to take a closer look, you should look for the term daytrading.

Day trading involves trading in securities. This works on a short-term and speculative basis. Within one day, various positions are opened and then closed again. The aim is therefore to profit from price fluctuations. The objects that are considered in more detail in this trade: Equities, foreign exchange and derivatives. In addition to day traders, swingtraders are also active on the stock exchange. They keep different positions for several days or even weeks. Time plays a very important role in this case.

Another difference between investing and trading is the time perspective. While investing is more about a long-term commitment, as a trader you are more interested in short-term positions. When trading, the ownership period can last from a few seconds to a week. Investors are more likely to have a half-yearly commitment in mind.

The fundamental aspect also plays a major role in investing. For this purpose, analyses of corporate balance sheets are often used to generate investment ideas. Once you have thought about the situation for a while, you decide after careful consideration whether you want to invest in something or not. In order to make a decision and find a suitable entry, however, the chart technique can also be used.

When trading again the temporal classification is decisive. The trader, who sometimes only holds various positions for a few seconds or minutes, cannot do much with a fundamental analysis. The trader uses this type of analysis at most to get a rough overview.

Traders only trade stocks with a high fluctuation intensity. For this reason, they can earn considerable sums in a short time. This is why traders prefer to use derivatives to generate a lot of profit with a small amount of capital invested. At this point, you rather pay a price in the form of time value, financing costs and specified term.

Investors usually trade in a pure underlying asset, such as a share. Investors normally have large assets. If, for example, they invest 6 million in a share, they can collect a reasonable amount despite a small return. When investing, the portfolio partly also consists of several investments, so that here too derivatives can be used from time to time. Among other things, this has speculative intentions.

So there are differences between investing and trading. However, the borders usually seem a little spongy. Fact is: If you want to make a lot of money as a trader and reap success, you should get a hard coat. He should always have his emotions under control so that ill-considered mistakes can be avoided. The investor has it much easier at this point. But even he must not lose his patience.