Friday, October 18, 2013

Trades VS. Investments

In terms of the market, trades and investments are two completely different methods for making profit. When making an investment, the initial goal is to make a financial gain over a long period of time. Investments are commonly held for years, taking advantage of interest, dividends and stock splits. Trading only regards the gain of wealth over a short span. Trading profits are done by buying at a lower price and selling at a higher price within a relatively short time. Catalysts relate to events that have either occurred or haven't occurred. If the events are taking place and your products are within that event, you'll want to sell your stock. If they haven't happened, people will either want to buy them..or wait. When you short sell, you buy stocks from other companies and you sell them individually to other buyers. You are able to receive the difference between the price that you sold them for and the original price. 

1 comment:

  1. Everything is very clear and concise except the bit about catalysts. It's still well put but an example could help explain the concept a little more.

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