by Mike L.
It seems that there are quite a number of market participants out there who use the terms trading and investing interchangeably. Unfortunately, they are not synonyms. It's important to have a good idea of what each means.
Trading is short term focus - typically less than a year type of operations. It also involves the bidirectional actions of a trader that is short selling and going long. If you just did not understand those terms, you need to go to Investopedia STAT.
Investing however leads to years of buying a particular asset and holding until it has appreciated so much that you're already willing to part with it. This is investing. Investing does not involve shorting a stock or any product for years, that simply doesn't work. There are way too many mechanisms in place to stop you from doing so.
What you do in the market speaks to your personality and risk tolerance. For the individuals who can't accept too much volatility on a short-term basis, they prefer to be investors or longer term traders. However, those who love the volatility and can stomach it, this is what trading is all about.
Is trading easy? Heck no. Can it be learned? Heck yes. It is crucial that every person regardless of whether they want to be in the markets or not know some basic knowledge of the finance world. The financial world is the source of a lot of what is going on in the world. From those oranges you're peeing in the morning to the gas you put in on your car the financial markets have had a hand in that. So it's truly vital you put everything in good perspective.
Traders from Equity Sense will be writing on this blog on positions and other market-related things.