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Are Social Security Private Accounts a Good Deal or Raw Deal for African Americans?
Whew! I almost wrote a really long article about the Social
Security System and what it means to Black folks.
Fortunately,I fell asleep while writing it just like you would
have reading it. Ican't think of anything more boring then an...
How to Avoid Dumb Investment Mistakes
Smart people sometimes make dumb mistakes when it comes to
investing. Part of the reason for this, I guess, is that most
people don't have the time to learn what they need to know to
make good decisions. Another reason is that oftentimes when...
Investing Psychology - Know Thyself
America will continue to be the land of opportunity and regardless of what course our economy takes over the next few years, it's likely that investment opportunities will be numerous and attractive. Companies driven by the ever increasing...
Seven Investment Terms Everyone Should Know
For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in...
Stock Market Diversification
In one of my previous articles (Investing in the stock market -9 powerful tips), tip number one was:
1. Do not spread your money too thin.
My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds....
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The Difference Between Investing and Trading
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk
one is prepared to take, and the commitment one can make to monitor
the investments dictate the strategy of whether to invest or trade.
Investing
Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial
appreciation over the long term.
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is referred to as the "buy and hold" strategy.
Real estate would be another example of investing, unless the property is purchased for quick flipping.
Jewelry, art, stamps, and
Associated Websites
collectibles are still other examples of investing where they are kept for a long time in the hope their value appreciates.
Trading
Trading is also investing but the time frame for a return on that investment is a much shorter period, usually a matter of a few days or weeks.
The most obvious example would be day trading where a trader is in and out of a market the same day.
Still other trading takes place over a period from a few days to a few weeks.
Most trading takes place with individual stocks and commodities, with commodity markets being the most predominant vehicle.
About the Author
Rob Hall is a successful futures trader, President & CEO of his own investment firm,
and international author. His books on learning to trade futures markets
are distributed through Sumas International Sales Ltd. View them at
http://www.futuresopps.com/Comm.htm
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