Thursday, October 17, 2013
Trade vs Investment
A trade is a short term investment that is waiting for a specific catalyst to make the stock go up. If the stock goes down you can either wait it out or buy more since the stock is on sale. Wen the catalyst happens the stock has to be sold otherwise emotion gets involved and money will probably will be lost. An investment is a long term commitment, like a marriage. Your looking to make money through earning dividends. Again when the stock goes down (around 15%), you want to either wait it out or buy more. This is mainly 4 to five year investment.
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Good job! Another thing to remember with an investment is whether they offer a dividend. That is another way that you can make money off an investment.
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