Difference between trading and investing? According to Kiyosaki or you?

Discussion in 'Trading' started by bankroll, Jun 7, 2014.

  1. Kiyosaki (for better or worse) says mutual funds are just savings, for him investing I guess starts at maybe 20% a year.

    Remember his Cashflow Quadrant (again - for better or worse): http://www.richdad.com/Resources/Ri...Rich-Dad-Fundamentals--CASHFLOW-Quadrant.aspx

    First, I am not sure where traditional trading - most of this site is about - fits in his graph?
    Maybe self employed - if you trade or your own.
    Maybe a business owner - if a bunch of people trade for you ;)

    Interestingly, tax lien investing - which is highly speculative in nature - is called investing - by Forbes and Investopedia. See here: http://www.elitetrader.com/vb/showthread.php?p=3986341
     
  2. luisHK

    luisHK

    In your link the author just states that investors and big business do well in upmarket as well as in downturns without trying to explain why he thinks it is so. A hell of an assertion. Most big businesses and investors also suffer when the economy goes to the pitts.
    Anyway i read rich Dad poor dad when k was early to mid twenties and broke and found it easy to read and helpful even if much is common sense, which a lot of people seem to be lacking when it comes to finance.
     
  3. Trading, as we discuss it in on this site, is for pure profit. Whereas investing, as Kiyosaki is describing, is for long-term capital growth.
     
  4. gkishot

    gkishot

    Isn't "long-term capital growth" for "pure profit" also?
    How do you define long-term? Is 9 months long-term enough?

    Technically I don't see any differences: investing is trading and trading is investing.
     
  5. vicirek

    vicirek

    Investing means generating dividends or income from Capital Asset.

    Trading means exchanging Capital Asset for cash equivalent at the current market price.

    Both are mutually exclusive concepts. Simple.
     
  6. newwurldmn

    newwurldmn

    I view investing as betting on the change in value of an asset.
    I view trading as betting on the change in price.

    Price can change with value changing.
     
  7. cornix

    cornix

    How successful is Kiyosaki himself besides his books on how to become wealthy investor? :D
     
  8. kut2k2

    kut2k2

  9. kessydiaz

    kessydiaz

    Investing and Trading are two very different methods. Investing in the sense is about building wealth over an extended time period of time through buying and holding of a portfolio of stocks, mutual funds, etc. on the other hand Trading requires more consistent buying and selling of stocks, commodities, etc. Robert Kiyosaki explained it thoroughly
     
  10. clacy

    clacy

    Anyone reading Kiyosaki for trading/investing advice loses all credibility instantaneously
     
    #10     Jun 13, 2014