Which is better "Investment"Or "Trading"? 100% Honest Review

                     Trading vs investment

Everyone plans to invest money to raise their saving or unused cash to avoid market inflation and for a better future. 

To protect your wealth from inflation, you have to be returned well and investment does it for you when you put your money on a particular market or business by believing the future growth of such company for a long period of time. But What if you start to convert this return to your daily income? These possible when you invest that amount Without adopting the fundamental or profit margin of that financed company for a short period of time.

The conversion process of your long-term investment to short-term process for daily income called trading.

Legality:

In order, to legality, all the investment controlling by SEBI conducting by AMC regulated by NSE and BSE, followed by RBI guideline and Initiated by Regulated reliable broker Are completely safe and genuine. Before starting Invest one should know complete detail of the broker (working as an intermediate between AMC and you) and their authorization. It should also be noticed the Permission of RBI to that. So investment and trading both are safe and legal if it has authorized broker and controlled by SEBI.

Profitable:

To profit trading can make capital 2x to 10x more richest than investment if handled by an expert. Normal investors get attracted to it and lose all their capital in the excitement of investment. Trading is very similar to the investment but it does not observe the market and foundation. 

• A trader intent to earn in the volatile market and places bid in the down market get exits when it raises. For that reason, he uses technical analysis to win a trade and sell that after won. 
• 
  
• But in investment, an investor doesn't use technical analysis and chart. it Starts a fundamental analysis of the company, observe the financial statement, understand the business value and places the investment for a long period of time and sells by believing that the maximum stock price level reached.

when cash is invested without observation of business and their expansion of the company it acts as a trader but when placed on the factors like the profit margin. value, and performance of a business.

Recommendation: 

if you invest in a short time period you can't collect too much cash from one single investment But if you invest for long, you can make your cash many folds over a single investment. In short 100 successful trade in a single day is equal to one single investment for a long period of time. Anyone can make sense of it. 

If you go for the investment you can earn fair money but it is time taking process but safe. But if you going for trading you can earn money quickly but it is risky. many retail investors fail their investment in this way. 

It is not highly bad for all. Most investors are day traders and are called an intraday trader.

Investment and trading are not different platforms. It is the different actions reacted by investors on a particular platform for different intension.

How you can define yourself from traders and investors?

If you planning to take an investment decision without investigation then you perform as a Trader.

An investor starts an investigation when it comes to contact with a company i.e Evaluating the value of the company and trying to catch the fetched data. 

If you planned to earn handsome cash from the stock market earlier ignoring the business model of such company you perform as a trader.

An investor first notices the manufacturing process, sources, and product of a company where he believed to invest.

So is the investment goes 100% profitable and is there No risk to lose?

Not exactly, There is also some chance to lose your money here. In a trading sense the market is Volatile between a certain price range but if it notices for the long term the price level will break the resistance level and started to fluctuate upper price level. This is one of the benefits of the investment. But retail investors also lose their investment after doing all the above procedures.

Solution

Diversification: Diversify your investment in different sectors like equity, commodities, currency. Because diversification helps to recover the loss if any one of them getting fail. 

Observing some Factors: It has been seen that when the stock market goes down the commodities start their outperform and stand out for profit. 

When Nifty goes down the currency exchange market raises up and being profitable to all investors.

There are a lot more factors for investors to observe the market condition and invest in different sectors accordingly. 

• Lockdown made Banks stand profitable in the stock market.
• Coronavirus made pharmaceutical sectors to raise the Nifty.

Reading Financial statement:

The financial statement is a strong witness to evident the core data of a company. it shows the current value of a company, profit margins, and lot more detail to investors to take an investment decision and able to catch the performance of such company and forecast future.

we provide 2 to 3 weekly training blogs to help your investment success and make you a successful investor so please don't forget to subscribe to our channel.