facebookWould you rather invest or trade? Why? (Can also specify and list out the different kinds of financial instruments that u would prefer to do investments or trades on individually) - Seedly

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Anonymous

03 Sep 2023

General Investing

Would you rather invest or trade? Why? (Can also specify and list out the different kinds of financial instruments that u would prefer to do investments or trades on individually)

Discussion (22)

What are your thoughts?

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It depends on oneself. I am not suitable for trading because I am not ready to sell if my investment goes down by 10%. I will always hope that it recovers. I cannot detach the emotional part out of it.

Ngooi Zhi Cheng

Edited 15 Sep 2023

Student Ambassador 2020/21 at Seedly

Certainly! Choosing between investing and trading depends on your financial goals, risk tolerance, and time commitment. Here's a neutral perspective:

Both investing and trading have their merits:

Investing:

  • Typically involves a longer time horizon.
  • Suited for those seeking gradual wealth accumulation and retirement planning.
  • Common instruments include stocks, bonds, mutual funds, and real estate.
  • Lower transaction costs and taxes compared to frequent trading.

Trading:

  • Involves shorter timeframes, often days, hours, or even minutes.
  • More suitable for those comfortable with higher risk and volatility.
  • Common instruments include stocks, forex, options, and cryptocurrencies.
  • Potential for quicker gains but also greater potential losses.

Ultimately, the choice depends on your financial goals. Long-term investors prioritize wealth preservation and gradual growth, while traders aim for shorter-term profits. Diversifying your approach by incorporating both strategies can also be an option. It's important to align your investment or trading approach with your individual goals and risk tolerance.

I am currently a Financial Advisor as well, so feel free to reach out to me on IG (@ngooooied) if you have any further questions!

Both. I do it like managing a soccer team. Trade is like strikers. Higher risk higher rewards but only small part of the team.

Invest is for longer term in ETF and they are my mid fielder. Control the game and support strikers when opportunity comes.

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I asked myself this question more than 10 years ago so I tried both. Back then I was making only 2.5...

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