trading vs investing

[alphaTh7]

Hii all..

So I have been trying to understand and find a way to play on the financial markets. I am mainly interested in swing trading (couple of days) to short/long term investing. I was wondering whether the people who actually make money out of trading have higher ROI compared to that of investing?

 

[Cornix]

If passive investing yielded more, there would be not reason to spend time in front of the screen and trade.

So answer is: active trading generally yields more ROC than investing, if you trade well, of course. But much more time investment required in trading vs. investing.

 

[bbmac]

isn't 'investing' what traders call being on the wrong side of a move and holding/hoping ?

G/L

 

[TheBramble]

If passive investing yielded more, there would be not reason to spend time in front of the screen and trade.

So answer is: active trading generally yields more ROC than investing, if you trade well, of course. But much more time investment required in trading vs. investing.

You'd think so, wouldn't you.

But can I suggest you make contact with as many traders and as many investors as you can. After establishing credentials and checking track records, I suspect there are MANY times more ‘traders’ than investors, but many times more profitable investors than profitable ‘traders’.

You hit the nail on the head with the proviso “if you trade well” and that’s the thing. Most don’t. But for those that do, the ability to leverage profits from short term moves into increasing position size for the next short term move will knock investors ROC into a cocked hat.

 

[Cornix]

You'd think so, wouldn't you.

But can I suggest you make contact with as many traders and as many investors as you can. After establishing credentials and checking track records, I suspect there are MANY times more ‘traders’ than investors, but many times more profitable investors than profitable ‘traders’.

You hit the nail on the head with the proviso “if you trade well” and that’s the thing. Most don’t. But for those that do, the ability to leverage profits from short term moves into increasing position size for the next short term move will knock investors ROC into a cocked hat.

Of course I meant to compare only consistently profitable traders with consistently profitable investors.

See no point in counting rookies just trying to make profits as neither "traders" nor "investors".