- Investment
- Trading
- Speculation
1.Let us first understand what is this investment .... here what you do is , buy some "good" shares that has the potential to grow and leave your money safe for long term meaning years togther or 6 months or it depends. Here the advantages are
+ Anualised Dividends.
+ Enough period for your amount to grow with the companies .
+ Bonus shares might be announced.
+ One time research before choosing and periodical performance watch(Quarterly performance) will be enough etc.
2.Now the trading , its also called as day trading or intraday trading in stock markets. Here you invest in a day in bulks and then close all the trade in the same day . For example in India daily trading time closes at 3:30 pm IST. So here you should watch for the minute changes happening in the market within a day i.e. your analysis time or deciding time is less. Here you take the advantage of the small fluctuations in the market within a day.These small fluctuations happen because the stock market or the stocks in which you invest is volatile. Share value is volatile i.e. keeps changing frequently because huge amounts of shares are traded(bought and/or sold) in a day. So here you need to be very careful during the entire tradung time untill you close the trade for the day. Advantages here are
+ You earn in a daily basis. (Other than market holidays :P)
+ If shrude enough you can earn even in a down time !(Beacuse the daily fluctuations will always be there).
3. Speculation ..... its not advisable to go for this and its almost like a gambling with money in the stock markets is what we know. So didnt bother to know about it. Request from this side is please dont go for this.
As you can see here two important things are yet to be put.They include "disadvantages" of each type of investment/trading types and mainly "which type will suit us". These will be comming in future postings. Hope this post is clear....
Awaiting your valuable comments !!!
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