Investing Vs Trading
Hello everyone today I’m going to write about investing vs trading and today everyone is confused about it so first of all I would like to thank you for coming here, if you love my content kindly comment below about my content.
Investing:-
So first let’s discuss about investing as we know that today everyone wants to invest and save money for the future because if you are a salaried person or earn income from one source so today we should make another source of income, without passive income our life might be tough as we know that everything are becoming costly day by day however come to the topic, Investing is long term process we can’t make enough money in short term process, today there are many ways you can make investing and I am going to discuss below in points.
1- Make investing through the stock market:- If you want to make money or invest money you should save money from your salary income or earnings from any other source monthly and you have to invest in the stock market, as you can invest in top best large capital, medium capital, and short term capital company which can give the best return.
2- Make Investing in a mutual fund:- If you are a salaried person or business person or any other professional you can invest in a mutual fund through SIP or Lumsum investing is the best way you can generate passive income effectively first I will discuss in short about SIP systematic investment plan it means you can start SIP every month with a little amount like 100 rs and more it is a simple technique to invest in a best mutual fund it will be like installment you can invest every month now moving toward Lumpsum when the sum of money invested by any investor is called lumpsum and lumpsum amount anyone can do any time, it is also a great way that investor makes passive income.
3- Make investing through a Debt fund:- If you don’t want to take a high risk in investment so you can choose a debt fund or bond fund. It is a great way to generate effective passive income and most of people invest in a debt fund or bond fund.
4- Make Investing through gold:- Nowadays gold become the favorite investment option for every investor because it generates a stable return if the stock market does not perform well so gold become one of the best investing opportunities and it is a diversified investment, now three ways investors can invest in gold. 1- Investors can invest in Physical Gold, 2- Digital Gold 3-Sovereign Bond.
5- Fixed Deposits:- Fixed deposits are also a good investment option but it may generate low returns as compared to other options like the share market or any other debt bond it is a very low-risk investment option for investors.
Above I have discussed long-term investment options, investors can choose according to his or her income streams and these are the best options that can generate the best return.
Trading
Now heading toward Trading, Trading is a short-term process by which investors can generate passive income, it is riskier than long-term investment options because we know every short-term investment option is riskier so let’s discuss one-by-one trading options. In simple trading is buying and selling stocks, bonds, commodities, and currency for short periods of time to generate profit
1-Day Trading (Intraday):- When any person buys or sells stocks from 9:30 Am to 3:30 Pm. In simple terms person holds any share for a few hours or minutes and sells before 3:30 pm it is called intraday or day trading.
2-Swing Trading:- When any person or investor buys or holds stocks for a few weeks, days, or months is called swing trading, Swing trading is the best option to do trading for a few days, weeks, or months it’s a great way you can generate income. but before doing swing trading investors should have adequate knowledge about trends, patterns, and charts then it will be effective and profitable swing trading.
3-Scalp Trading:- Scalp trading means when investors buy or sell any stock or securities several times in a single day to make a profit from small trades is called scalp trading. It is also known as micro trading.
4-Position trading:- Position trading is when investors hold for a long period of time and ignore short-term price fluctuation and it completely depends upon the trend and themes. For example, if anyone thinks that Tata Power’s stock is in trend and will work in the future investors hold this stock for a long period because it has more chances of appreciation in the future. In this ways, it will be position trading.
5-Momentum trading:- In simple terms when any stock is in a downtrend and investors buy it and when a stock takes an uptrend investors sell it and make a profit from momentum and it is a very famous strategy that everyone follows.
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