Description
The goal of trading is to earn profits over the short-term from price movements that occur with financial securities. So rather than investing over the course of years and decades to build wealth, trading is a for-profit business approach to the markets. Investors are happy getting an annual average return, traders seek to beat the markets over short time periods that can last anywhere from minutes to day, or weeks to a few months.
There are some trading styles that will even hold positions for more than a year, but they never hold them any longer than 2 years. The goal in all cases is to get in and get out. Not every trade is going to be a winner, you're looking to build a track record where you have more winning trades than losing trades, which adds up to profit.
That's what trading is, it's a for-profit business, and many traders make seven figure incomes. You can do it part-time or full-time. Some traders only spend a couple of hours a day on a part-time business, while others quit their day jobs and devote full-time effort to trading.
While investors are hoping to build a portfolio of stocks that they hold for long time periods, traders often don't hold positions at all. When they do hold positions, it might be one or two stocks at a time that they will exit quickly once there is a good price move.
Contrast these views and approaches to those of a trader. A trader has no intention of taking an ownership stake in the company, but only wants to control the shares for a short time frame in order to make a profit. They don't directly care about the products a company is offering or its mission, they are only interested in upcoming potential for price movements. So, if a company releases a new product, great. The trader will seek to profit from the large price movements that occur shortly after the product is released, but they aren't going to ride it out over the long term.
This book talks about how to become a great stock trader. This book covers the following topics:
- How to get started with stock?
- Types and styles of options
- Secrets of the stock market
- Why stocks are good investments
- Build a strategy
- The stock market trend
...And much more
One of the biggest differences between investors and traders is that some people are risk averse, while others are willing to take risks. The investor often won't invest in specific companies, because they seek security for their capital. Wanting to build a retirement nest egg, they invest in a diversified array of stocks and funds. They look for relative safety, and they get it through diversification. The hope here is that you can ride the long-term tide of the market. That's a good bet over the course of several years to decades, history shows the trend is always upward. Recessions may come and go, but over time they pass and the markets recover. The goal in this case is to have a large number of stocks in your possession by the time you retire, so that you can cash them out gradually and enjoy the benefits of a passive income.
Click the "Buy now" Button and learn now on how to become a stock trader.
