Difference between a trade and an investment ...

Discussion in 'Trading' started by kandlekid, Dec 4, 2019.

  1. You intended to trade a stock , bought it and decided to keep it , became an investment.
     
    #11     Dec 4, 2019
  2. newwurldmn

    newwurldmn

    Trade to capture a change in price.
    Invest to capture a change in value.
     
    #12     Dec 4, 2019
    kandlekid and Flynrider like this.
  3. investment - long term (at least a year) you look at fundamental, balance sheet, pe ratio, eps, and how their competitors are doing etc. warren buffet investing aka value investing or whatever the hell that mean.

    trading - more technical. you use charts. you enter a trade based on your criteria and signal. you also sell based on your price target and have a stop loss if you are a real trader.

    anymore questions?
     
    #13     Dec 4, 2019
  4. Turveyd

    Turveyd

    Yep, not all investments will pan out ofcourse, some will go to the moon and others to zero, most to zero obviously.
     
    #14     Dec 4, 2019
  5. deaddog

    deaddog

    Investment; your focus is on where to buy

    Trade; your focus is on where to sell.
     
    #15     Dec 4, 2019
    Nobert and leon7 like this.
  6. ironchef

    ironchef

    When my short term trade fails, it becomes my long term investment.
     
    #16     Dec 4, 2019
  7. .sigma

    .sigma

    True but they are structurally different.

    Trading i'm looking to profit off short term price action and or volatility movement.

    Investments I'm looking for a longer term residual type income and earn a low standard deviation moderate risk/return instrument that I can make more than the risk-free rate and maybe a bit more if I do my due diligence
     
    #17     Dec 5, 2019
  8. Evgeniy

    Evgeniy

    "Speculation" is an operation to profit from the difference between the sale and purchase prices of an asset. An asset has come - an asset has gone. Regardless of the time between these two actions.

    An “investment” is the possession of an asset with the aim of generating income from it. The asset should generate income for us. We bought the asset, we own it, with some regularity we get income from owning the asset. Or loss))
     
    #18     Dec 5, 2019
  9. TommyR

    TommyR

    an investment is typically performed by an individual of fit and proper moral disposition. it is for the good of society not to increase his own money so should be charged very little or no tax
     
    #19     Dec 5, 2019
  10. deaddog

    deaddog

    Best explanation so far.
     
    #20     Dec 5, 2019
    Evgeniy likes this.