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Saturday, February 16, 2008

What is the difference between Investing and Trading?

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $55.00
Online Savings Balance: $2.06


Ok. I've said it a ton of times. Trading and Investing are different things. Trading is not investing, and investing is not trading. I've also said that trading is not about Wealth creation. What exactly do I mean by that since I don't have a problem with trading and as I stated the other day, I recognize it's benefit to our economy? I discuss the difference between the two in this video:



In the future? I will be discussing more on the 'investment' route.

* * *

Investing Account Balance: $131.14
Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $55.00
Online Savings Balance: $2.06


Total Trades and Investments: 1
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 1
Average Drawdown: $86.51
Accuracy Rate: N/A
Average Reward: $0.00
Risk Reward Ratio: N/A

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

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