MOBE Review :Investing v/s Trading

Investing v/s Trading

•The Internet and the world are, in general, full of an overwhelming amount of opinions, systems and “secrets” for how to profit in the stock market. •When you’re especially new to the topic, what you need is a filter that identifies and cuts out the useless information and only lets the potentially useful pass through.•To get that filter, you need to establish your stock market strategy, and that’s what we will discuss in this article.

It’s the First Step

•Like art or politics, the stock market is a vast and fascinating subject. •And just as there is a rainbow of political philosophies—or a multitude of ways to render something artistically—there are several ways a person can approach the stock market as a way to increase their money.

Investors

•A few simple adjectives to describe a stock market investor would be: patient, conservative, perseverant and future-focused.•Investors are concerned with the gradual accumulation of wealth through the buying and holding of stocks over a longer period of time. An investor may hold a stock for decades and expand investment by using profits or dividends from his shares to acquire yet more of it.

Traders

•A trader is the opposite of an investor. They are active, speculative and more willing to take risks.•Traders make more frequent stock purchases and hold them for shorter periods of time. •They buy low and sell high (or, in the case of a declining market, sell high and buy back low—the “short sell”) with the intention of making a relatively quick profit.

categories of traders

•There are four well-defined categories of traders, each of which deals with narrower and narrower holding periods and varying degrees of speculation and risk: 1. Position Trader 2. Swing Trader 3. Day Trader 4. Scalp Trader

1. Position Trader

•Buys and holds stocks for a longer period—several months to a year or more—before selling. •Position traders analyze a stock’s weekly or monthly chart to ascertain the trend, which they then use to determine the optimum times to buy and sell.

2. Swing Trader

•Buys stocks and seeks to make a profit from it within a week or so. •The word “swing” refers to short-term price swings, up or down, that a stock may exhibit over a period of days.

3. Day Trader

•Buys and sells stocks within a single trading day, typically keeping no open positions overnight.• A day trader can potentially reap a huge profit on even a small uptick in a stock’s price by use of margin, borrowing money from the broker, to purchase many more shares than he may be able to afford on his own.

4. Scalp Trader

•Buys and holds stocks for seconds or minutes. Scalp traders make many—perhaps a hundred—trades in a single trading day. •The profit per trade is smaller but, because of the short duration of the hold, the scalp trader’s money is exposed to the fluctuations of the market for a shorter time, which means less risk.

Final

•The traders may chuckle and wince at the “tortoise” strategy of investors, and the investors may shake their heads and roll their eyes at what, to them, seems like financial recklessness of most traders.

To Know More Visit Our Sites

•http://mattlloyd.review/•http://mattlloydeducation.com/•http://mobebusinessreviews.com/•http://mobeeducation.com/•http://mobeabc.com/•http://mobehowto.com/•http://allaboutmobe.com/•http://mobetestimony.com/