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

Anonymous

03 Sep 2023

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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)

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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.

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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.

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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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