Is Trading More Profitable Than Investment?

Both trading and investing can be considered as two different methods of attaining profit in financial markets. Both traders and investors look for profit by taking part in the market. The only obvious difference between the two groups is that investors tend to seek larger returns over an extended period of time, while traders seek smaller, more frequent profits over a much shorter period of time.

Comparing Trading With Investing

Both trading and investing require a degree of emotional discipline as well as patience to execute correctly. However, the time required by a trader and an investor differs in many aspects. In the case of traders, they remain active, potentially executing several trades throughout the day if they find positive trading opportunities.  Investors, on the other hand, work on a long –term basis, as it does not require constantly watching the positions of his/her portfolio.

Comparing the potential returns of trading and investing is like comparing oranges to apples, as there are no definitive ways to answer it. One of the biggest advantages that trading has over normal investing is the phenomenon of rapid compounding of gains. For instance, if a trader starts out with $50000 with a 10% profit every month, the trader starts with $55000 in the next month, followed by $60500 the following month if the profit level remains the same.

Thus, through trading, a trader tends to make gains on prior gains, as well as on any additional deposited capital.   This serves as a striking advantage that trading has over long-term investing.  This is not the case with investing where traders have to wait years for profits to be realised and cannot use the said profit to generate even more gains.

Using IQ Option for Trading

Many potential traders avoid trading, citing a lack of reliable brokers as the prime reason behind their decisions. However, IQ Option, a Cyprus based brokerage service has become a popular option for traders looking to diversify their portfolio. Along with binary options trading, IQ Option offers a mix of forex contract for Differences, Stock CFDs, cryptocurrency CFDs, commodity CFDs as well as digital options, in a single, seamless platform.

As mentioned before, IQ Option offers a mix of forex, cryptocurrency, stock and commodity markets for traders to trade in. It offers Binary Options on some stocks, forex pairs and on some commodities. Because of recent changes in regulatory directives, it offers digital options for EU-based traders who are prohibited from trading Binary Options by law.

As traders require some skill and experience before attaining success, IQ Option offer a fully functional demo account for traders to get the hang of it. This demo account has all the features of a real account, with virtual money for traders to hone their skills. Novice traders can thus use this feature to get a feel of the trading market in real time, with options to restore the original virtual balance at any time.

IQ Option is thus a secure online broker which caters to both small and large participants in the market. The minimum deposits are as small as $ 1 USD with trades starting from $1 as well. Founded in 2008, the platform has more than 25,580,000 as of 2020.

Conclusion

Both trading and investments have their own sets of advantages and it cannot be definitively said which one is better. Ultimately, it depends on the skill level of the trader or investors involved, in order to be successful. With the emergence of online brokerage services such as IQ Option, the online trading industry has provided access to more traders worldwide than ever before, making trading one of the most accessible and profitable aspects of dealing in the financial market.

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America’s Wealthiest Families

america's wealthiest families

Millionaires and billionaires have a solid grip on the world’s share of wealth. A report by Credit Suisse shows that the total amount of global wealth grew to $360 trillion in 2019. Almost half of the wealth is controlled by millionaires. What is perhaps more jaw dropping is that half of the world’s net wealth belongs to the top 1%.  Continue reading

Investing in Stocks Abroad

Diversifying Portfolios With Foreign Stocks

When it comes to investing, the more options one has, the better. International markets open up new opportunities for investors with different risk appetites. Foreign stocks provide new ways to diversify portfolios and benefit from the economic growth of other geographic regions. It is often advised to ensure that 5% to 10% of a portfolio is constituted of foreign stocks. More aggressive investors may be increase their allocation to 25% which is considered as acceptable. Continue reading

Solar Investment – How Long Is The ROI

Solar Panel Systems
Solar Panel Systems

Investing in solar energy creates new opportunities to increase household savings and save the environment at the same time. Different factors determine how much can be saved for households using solar energy. Such factors also determine the length of time it takes to gain adequate return on investments. Return on investment of solar power systems are, among other factors, affected by property characteristics, electricity rates, solar renewable energy certificates, financial incentives. Continue reading

Buffett’s 7 Investment Tips

 

investment tips

Most of us are familiar with famed investor Warren Buffett.  He has amassed a fortune of over $60 billion in his lifetime.  He is known for picking great investments and sticking with them for the long run.  In a world where it is easier than ever to buy and sell stocks in the blink of an eye, day-trading has become more and more popular.  However, Buffett has always been outspoken about the negative effects of buying and selling equities over the short period.

So what does Warren think people should do to create wealth for themselves?  The link below tells you just that.  While creating a net worth equal to that of Buffett’s is highly unlikely, it is very easy to take just a few steps in the right direction to follow Buffett’s advice.

http://finance.yahoo.com/news/warren-buffett-best-investing-advice-201019702.html

Should I Save or Invest?

save or invest

Why not do both?

Whether you save or invest your money really depends on the financial objectives you are trying to accomplish.  Saving usually refers to putting money away from where it can be accessed quickly and easily for an impending purchase.  On the other hand, investing should tie up your money for a length of time, but it will also produce better returns.

TIAA-CREF’s video below breaks down the difference between the two.  After watching, decide what financial goals you are trying to achieve in both the short term and long term.

https://www.youtube.com/watch?v=PvKXr_mkF5s

 

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