Investing karna sahi hai ya Trading😊

One of the biggest mistakes that a normal retail investor does in India is that he comes to the share market for trading but goes on doing investing. And comes to the share market for investing but goes on doing trading.


These are very different. Understanding the difference between the both, comprehend it, and accordingly plan your share market journey is the most important.

Here I would tell you the difference between investing and trading. And how you can participate in the share market if you are an investor or trader.

You might have heard the name Rakesh Jhunjhunwala.In India, his name comes up as one of the biggest investors. People say that he is a very nice investor as well as a nice trader.

If you talk about any of the biggest investors, then at some moment they might have traded too in investing. Because after trading only the groundwork for the market gets established. But as the way he earned money from trading the same way, he deployed that money in investing and today we all know him in such a big way.


So, there is a way that you can follow too and that is, if you are new to the market then you can start with trading and end up developing yourself as an investor.

But is the reverse possible too?

To start with investing and then go to trading, then according to me I would say avoid these and you decide whether you want to become a trader or investor.


What is Trading?

When I say about trading it means, that to buy and sell it. If we look at the normal patterns, talking even about the vegetable market, then to take at a low price and sell high price, then only you can earn as a trader.




So, when you talk at low and sell at the upper level, then you try to predict the movement that whether it is suitable to take it at low, or its suitability to sell now. To judge this movement which is known as price action, that the price of thing which we are talking about is starting to rise, to judge it is only known as trading.


Trading can be done in two ways,

1- Intraday Trading:- This means for the day itself. To buy and sell today itself. Not talking about the position at home. it’s for today only.


2- Swing Trading:-Which means the position beyond one day. Meaning I’m talking about the position home today. And whenever I feel, tomorrow or in future. That its price action is concluded then I would sell it.


PRICE ACTION CONCLUDE:- Which means every share is moving at a swing! 

Starting from below goes up gets corrected and conclude then comes to go down and same, to judge this swing is the role of a trader.




If I talk about trading as a full-time occupation, the people who trade whole day, whose house runs from trading are who have entered into the trading system, such that they judge the price properly that whether this can give me a swing and whether I can participate in it and make money.


What is Investing?

When we invest, then we don’t think for a small period. We always think about the longer period.


Let’s take for example that you are starting any business, either small or large. You don’t think what would you do it for 1 year or 2 years Then a vision created is for 5 to 10 years, a working road map is made.







When you do invest in any stock, then for a long period, a vision or road map for that investing is created. And whenever you’re investing style synchronizes with that company’s owner, then only huge money earning is possible.


So, whenever we talk about trading, we talk about price action. The share that is been traded, what is its price saying?

And whenever we talk about investing, then we talk about business. The company that is doing business and how much potential it has, and whether the comp[any is in right management such that he can do business properly.

So, Trading means to share; stock. Investing meaning business.


So, I have to give you an opinion, you have to come to market then how you should do.

Firstly, how much time do you have to give it to the market. It’s the most important point. If you have time that you can give 1-2 hours/day to market, then trading; Not necessarily active, whole day trading but passive trading, actively look at the position and manage it. Then you can do that if you can give 1-2 hours/day.


But if you can give 1-2 hours/weekly then what I feel is look after investing were building long term position in stocks that how it’s doing business would be a better path for you.


And if you cannot do both, 1-2 hours/day or 1-2hours/week and only give 1-2hours/month then my view is that you give your money to some fund manager. Either to passive fund manager through ATF, or to active fund management through a mutual fund, PMS, or AIF.


So, if you follow this design then through the share market our primary objective is to earn a lot of money, that objective can be fulfilled.


CONCLUSION:-

Both Investing and Trading things are different, sometimes you have to act in both but not in starting. Over a period of time with a lot of experience.



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