What is the difference between trading and investing? Explanations from female trader Inna Rosputnia
In this video I give detailed explanation what is the difference between trading and investing. Understanding it is very important specially for beginners. I think it’s the very first step for forex and stocks traders to find out what type of traders they are and how they should build their trading strategy.
Before we get into specifics of trading and investing let’s understand the difference by looking at two the most influential people in the world of wealth creation. Warren Buffet , known for his long-term investments and George Soros, who hade made money from countless number of trades.
So, trading is generationg returns with often buying and often selling of trading instruments. Investing is to build wealth over long period of time through buying and holdingof investment instrument (more often stocks).
In two words, trader believes price will move in some direction and reach some target; investor believes company will perform well in future and expects to get returns in form of dividends and higher share prices. All my videos are answers on questions you send me via my website. If you would like to get answers on your questions about forex, stocks, futures, commodities trading, investing or financial planning just leave me message. Hope my videos will help you to become profitable trader!