Investing is a word that is often heard in the last few times to this second. This is because there is a wide road in investment. But in time, investment is not an easy thing. In addition to info on the investment too little, coupled with the effort to do so for the layman. Fortunately nowadays, everything can be done easily and quickly so that the investment into a lot of activities done by people from Young to old in order to benefit.
There are many types of investments that can be run right now such as stocks, property, gold to mutual funds. Speaking of stocks, the stock investment is actually a pretty complicated game because it must be able to read the market in order to get the right stocks and can sell them at the right time as well.
Actually, besides stock investment, there are also stock trading terms. While carrying the word “stock”, in fact both activities have significant differences, including the culprit. What are the differences in stock investments with stock trading? Here’s a complete explanation of one of the activities in this financial world.
This type of investment is an activity to buy stocks and save them when the price rises. But usually people who play stocks are not too with the ups and downs of shares because assuming that the price of the stock will rise again at the right time.
When investing shares, usually the shares that are owned will be withheld for a long time, even more than one year. These purchased stocks usually have low liquidity. If you want to sell, there is enough feeling to keep that stock or even worse conditions. Fortunately, the risks gained when investing in stocks are usually not too large.
Playing stocks with investment systems can be done by anyone, including the layman. But when talking about stock trading, the game has climbed one more level and there is the biggest difference that can be felt.
As explained above, stock trading has a higher level than stock investment. Why can this argument be issued for stock trading? Because playing stock trading should be done by traders who have first known the ins and outs of the stock world.
Trader does dedicate his life to stocks in order to benefit as much as possible in a short time. When the stock investment is usually withheld for 1 more years, not by trading stocks. The Trader will resell the new shares he bought in a very short period of time. It can be 15 minutes, 30 minutes and longest only 1 week. From the time period and the perpetrators alone, it is obvious how the difference in stock trading is more complicated and challenging than the stock investment.
In addition, the strategy used is certainly much more complicated by looking at the global politics and economy in order to obtain the desired stocks. The risks are also even greater. Therefore, with the concept of selling and buying very fast, not everyone can play in the affairs of stock trading.