Trading Or Investing, Which One Is Better For You?
People often talk about trading and investing as if they’re the same thing, but they’re really quite different. In this post, I’ll outline the differences between the two, which will hopefully help you decide whether your personality and current lifestyle are best suited to becoming:
- A trader,
- An investor, or
- A combination of both.
Which one are you?
Both trading and investing have the potential to earn you high investment returns over time. I would say investing is easier to learn, less stressful, and needs a lot less day to day maintenance than trading. You can read Stop Saving Start Investing if investing is something you wish to consider.
On the other hand, if you learn how to master trading you can potentially do very well financially. In fact, many people have learnt how to trade from home full time. But be warned:
- It takes time to become proficient at trading, and you’ll need some professional coaching to get you there.
- If you’re going to start trading it’s best to start small, with money you can afford to lose, until you build the skills to take things further.