Trading and investing are the two key terms associated with stock markets. Hariprasad K, who guides many individuals in both trading and investing, explains about it in detail here.
He is more into day trading which helps to create a daily source of income. His prop trading firm Livelong Wealth is also into online coaching for trading and investing. He also guides individuals to invest in shares, ETFs, mutual funds, bonds, etc to achieve longterm goals.
Trading
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Trading is the process of buying and selling shares for a short period of time like within a day. It includes the use of technical indicators, price action, levels, and news to make the entry. Trading has the potential of providing higher profits if you have a strategy that suits you well and has backtested. However, the risk associated with trading is higher as compared to investing especially when you are using leverage.
Trading is similar to throwing a stone at a mango tree, if you have got the right skill set, you will definitely get the fruit.
Investing
Investing is the process of buying and holding shares or securities for a long period of time like more than 5 or 10 years.
An investor is one who finds immense possibilities and growth opportunities in a particular business and purchases shares in return for capital appreciation and profit shares he could get in the long run, maybe a couple of years. We perform fundamental analysis of the firm as well as study the business model of the firm along with a check on the management’s capabilities.
Investing is just like planting a mango tree, you take care of the plant and nurture it for years before getting your fruit.
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