Investment is a method where one puts in
money into something after a thorough analysis and expects profits, that is
highly secure with the fact that principal amount stays intact and also have
security of return. When it comes to investment, you must avoid speculation or
gambling, a not so thorough study is highly not recommended. It is usually done
with a secure organization. They are made through intermediates like banks,
brokers, insurance company and lenders.
Day trading is carried out by traders who
buy and sell commodities within the same working day. The trade is closed once
the day ends. In a day trading game you need to invest in the right forum or
you will end up with major losses. Whether the market is fluctuating or no, it
should not make a difference to a day trader. A day trader needs to capitalize
in a single working day. The stocks are in position only till the day is over
and lose value once it is midnight.
When pointing out differences between day
trading and investment, you should understand that day trading is very short term.
It all depends on what you do within those few hours. By the end of the day,
today’s stocks are as good as history. Investment is concerned with holding
your assets over a longer period. An investment can last over years. Day trading
is usually considered to be more risky as it is short term and if it doesn’t
happen in that day, then it will never happen. But with investment, it is more
predictable as it is spread over a period of time.
Day trading may require you to resort to
betting and this might lead to depleting in value of stocks. This is little
less when it comes to investments. This is the basic difference between
investing and day trading.
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