Investing Information
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Next Investing Topic : Rolling your 401k: Contributory IRA vs. Rollover IRA - In an ideal world you would start your working career with a great company in your early 20s, steadily climb the corporate ladder, retire at age 65, and draw a sufficient income from your accumulated 401k account to live happily ever after.Unfortunately, that's not how the real world works. If you are like most people, you will change career...[ read more]
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The Difference Between Investing and Trading
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk one is prepared to take, and the commitment one can make to monitor the investments dictate the strategy of whether to invest or trade. Investing Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial appreciation over the long term. You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is referred to as the "buy and hold" strategy. Real estate would be another example of investing, unless the property is purchased for quick flipping. Jewelry, art, stamps, and collectibles are still other examples of investing where they are kept for a long time in the hope their value appreciates. Trading Trading is also investing but the time frame for a return on that investment is a much shorter period, usually a matter of a few days or weeks. The most obvious example would be day trading where a trader is in and out of a market the same day. Still other trading takes place over a period from a few days to a few weeks. Most trading takes place with individual stocks and commodities, with commodity markets being the most predominant vehicle. Rob Hall is a successful futures trader, President & CEO of his own investment firm,and international author. His books on learning to trade futures markets are distributed through Sumas International Sales Ltd. View them at http://www.futuresopps.com/Comm.htm
Related Products For Download: Read Next : Rolling your 401k: Contributory IRA vs. Rollover IRAIn an ideal world you would start your working career with a great company in your early 20s, steadily climb the corporate ladder, retire at age 65, and draw a sufficient income from your accumulated 401k account to live happily ever after.Unfortunately, that's not how the real world works. If you are like most people, you will change career...
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