Trading vs. Investing Wisely. Who Earns More Money?

If someone asked me today if I consider myself an “expert investor“, my answer is a resounding NO, and rather think that I’m a little green and I have yet a long way to learn. Of course, people surround floor has been dedicated to investing for over 30 years. These people have blogs, do not participate in social networks and certainly are not “relevant people in the world of internet”, but they are my teachers and I know who live on investment.

On the other hand I rub shoulders with “expert investors” engaged in trading, which gives me daily lessons on how to approach investing, reminding me that so far the only luck I’ve had is not knowing how to analyze a chart or stopping to analyze the PER a company. This morning we put numbers on the table and have drawn some conclusions.

The world must be people who were getting rich through trading, but I do not know any. Moreover, from what I have observed, the trading is the closest thing to play slot machines: “I’m losing; I have to change me back”.

Of the 5 traders experts analyzed in 2010 launched an average of 700 purchase orders and selling in the market and only one has lost money, even with 815 sale orders (3.3 orders per day), I too much work for so little profit taking a huge risk.

The other side of the table, my companion and I Victoria Bernal, 31 and 15 orders of sale have ended the year with an impressive performance, not to speak of our beloved mentor, who with 5 orders released to the market has achieved earn more than € 135,000 over 2010, clearly the amounts spent by this person are quite high.

Canva-invest

What does this mean?

The message is very simple to explain. Respect for trading, but true is that the market is not suitable to operate every day. Some days it’s not doing anything; you earn more money or at least not lose money. The short-term investment is striking, but you can not take place and the volat currently suffering the bag. Moreover, as I have observed, the practice of Trending often lead to addiction and is not suitable for heart disease, besides not seeing the profitability finish anywhere.

If you ever hear that someone won more than € 4,000 in one morning, he thinks it may have been very lucky or that it is more likely that you are blatantly lying, it is not normal.

On the other hand, another message that we can draw from this is that we must never lose the humility and of course we must always be open to learning.

And as we’ve said before, it takes patience to find the ideal time to enter a value, looking for the short term, but not obsess on it, and of course, being prepared in case our investment in the short term we must pass it to term automatically. Above all, re-comment that stock market investment is as hard as we want to make it difficult.

Again, smart investment to me is common sense wins the battle for this analysis so complicated.


Investors in the stock market myths
Today if you show a person and asked him “What do you do?” ‘I am investor. .- Automatically invest in stock your brain processes information and the first thing is that you think ahead to Gordon Gekko or Warren Buffett, a person much smarter than you and probably millions. Some …

economictrade

The Forex Market Maker
Each broker can be found on the Internet could be considered a market maker in Forex. The term comes from what they do, and that is the “Market Maker”. When you place an order with a broker, does not end in a changing table itself, but remains on the Internet. …

Forex Trading Signals is a pros and cons of learning that shows how to use automated forex signals
Forex can be a difficult thing. On the one hand, most Forex traders are drawn in by your emotions. They come across an advertisement for the currency that promises great wealth in a very short period. On the other hand, if you decide to invest in Forex and follow the …

Investing in Social Networks. They are overvalued, does not mean they can not be profitable.
As you will have read, Warren Buffett strongly discouraged investment in social networks, which they feel are overvalued. Mr. Buffett, a, I think, probably by its principles is the best investment that currently exists on the planet, because despite recognizing it as an investor “old fashioned” way is that the …

Leave a Reply

Your email address will not be published. Required fields are marked *