iBusiness
  • Home
  • Top News
    • South Africa
    • Powerball
    • Lotto
    • SA Daily Lotto
    • Opinion
    • Motoring
    • Economy
    • Tech
  • Business
    • Business Banking
    • Business Finance
  • Personal Finance
    • Banking
      • Capitec Bank
      • ABSA
      • FNB
      • African Bank
      • Nedbank
      • Standard Bank
      • Other Banks
    • Investing
    • Loans
    • Taxes
  • Forex Trading
    • Beginner’s Guide
    • Regulated Brokers
  • Website Hosting
  • SA Networks
    • Cell C
    • Vodacom
    • MTN
    • Telkom
  • Insurance
No Result
View All Result
  • Home
  • Top News
    • South Africa
    • Powerball
    • Lotto
    • SA Daily Lotto
    • Opinion
    • Motoring
    • Economy
    • Tech
  • Business
    • Business Banking
    • Business Finance
  • Personal Finance
    • Banking
      • Capitec Bank
      • ABSA
      • FNB
      • African Bank
      • Nedbank
      • Standard Bank
      • Other Banks
    • Investing
    • Loans
    • Taxes
  • Forex Trading
    • Beginner’s Guide
    • Regulated Brokers
  • Website Hosting
  • SA Networks
    • Cell C
    • Vodacom
    • MTN
    • Telkom
  • Insurance
No Result
View All Result
iBusiness
No Result
View All Result
Home Investing

To Trade or To Invest…

iBusiness Staff by iBusiness Staff
June 3, 2021
in Investing
2
To Trade or To Invest…
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

The two concepts – trading and investing – are so similar that they may become quite confusing to financially lay people.  Both involve seeking profit from the investment of an asset and, quite often, the man on the street may believe they are one and the same.  That is when the expert opinion of a savvy investor is of utmost importance. 

Expert consultants will breakdown the differences between trading and investing as follows:

INVESTING:

  • Investing occurs when someone acquires an asset hoping that its value will appreciate in value over time, so that it can be sold at a higher price than the initial price of purchase.  The difference is the profit – hence the investor has increased his money. 
  • The common assets that investors generally purchase are stocks/shares, bonds, valuable art pieces and real estate – to name but a few.
  • The expected time of returns on investments is generally long-term, anything between 5 to 30 years.
  • To decide on a suitable investment, the investor analyses the intrinsic value of the asset, i.e., determines whether its current market value is over, fairly, or under-valued.  Should the asset’s value be higher than the current market value it can be considered a good investment and the investor will purchase the asset.

TRADING:

  • When trading, the investor will be spending money on assets that will hopefully appreciate in value in a short space of time, with profits being subjected to the volatility of the asset.
  • Due to the high liquidity of the financial markets, the investor normally looks for securities which are stocks/shares and foreign exchange, also known as forex to name but a few.
  • The time frame for profits and returns is short-term, ranging from just a few minutes to a week. 
  • The trader normally does not know much about the security they are trading with.  The decision to purchase is made by doing simple technical or fundamental analyses and taking the results into consideration.

Although quite similar – both are about buying, selling and making a profit – the core difference is the obvious time of waiting for one’s returns and the dept of analysis done by the investor.  Like all business transactions, both involve financial risks.  Trading is most probably the riskier of the two, due to the speculative nature of the markets, whilst investing has proven to be the best way of building long-term wealth. Ultimately the decision to trade or to invest will be determined by one’s financial goals and risk appetite.

iBusiness Staff

iBusiness Staff

Related Posts

Investing

South Africa Investment Conference Underway

March 24, 2022
Investing

Amazon Announced A 20 for 1 Stock Split And Share Buyback

March 14, 2022
Understanding Stock Splits And Stock Buybacks | StockMarket 101
Investing

Understanding Stock Splits And Stock Buybacks | StockMarket 101

March 14, 2022
Next Post

Daily Lotto Results: Thursday, 3 June 2021

SOUTH AFRICA’S ALARMING UNEMPLOYMENT RATE

SOUTH AFRICA’S ALARMING UNEMPLOYMENT RATE

SASSA November approved but no paydays

SASSA Warns of Scammers Targeting SASSA Beneficiaries

Comments 2

  1. Avatar Nina Dos Santos says:
    12 months ago

    Now I understand the difference. Thank you.

    Reply
  2. Avatar anonymous says:
    12 months ago

    The writer gave an easily understandable simplified explanation of the differences between trading and investing. Though helpful, the writer’s target was the financial layman and he could have gone further to explain that trading for the general public differs from that of huge financial institutions i.e. the financial powerhouses trade the actual instruments and rarely use leverage, whilst the general population trade CFDs (Contract for Differences) i.e. they do not trade the actual instruments but trade on the price fluctuations of the underlying instruments. The general population also make use of leverage, which though it increases profit potential, it also increases the risk associated with the trading.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

6 steps to find out whether a broker is licensed by the FSCA

Tuesday 21 September 2021 iDaily Market Wrap

8 months ago

Daily Lotto Results: Sunday, 27 March 2022

2 months ago
The Effect Of Various New Exchanges In The South African Financial Markets

The Effect Of Various New Exchanges In The South African Financial Markets

9 months ago

Daily Lotto: Tuesday 19 May 2020

2 years ago

Topics

#business #businessnews #Corruption #covid-19 #Covid19 #currentaffairs #DailyLotto #daily lotto results #DailyMarketWrap #Economy #equitymarkets #finance #Financialmarkets #FSCA #funding #Globalmarkets #Inflation #investments #JSE #loadshedding #lockdown #lotto #lottoresults #marketnews #personalfinance #petrolpricehike #powerball #powercuts #Sassa #Sassacares #Sassa grants #SouthAfrica #stockmarket business Coronavirus in South Africa daily lotto results daily lotto winning numbers Data Bundles Eskom Finances Life Insurance Load-Shedding lotto winning numbers SASSA News Visa
No Result
View All Result

Highlights

Daily Lotto Results: Thursday, 12 May 2022

Daily Lotto Results: Wednesday, 11 May 2022

Lotto and Lotto Plus results, Wednesday 11 May 2022

Daily Lotto Results: Tuesday, 10 May 2022

Powerball and Powerball plus results, Tuesday 10 May 2022

Daily Lotto Results: Monday, 09 May 2022

Trending

SA Daily Lotto

Daily Lotto Results: Monday, 16 May 2022

by iBusiness Staff
May 16, 2022
0

Are you ready for tonight’s daily results for Monday, 16 May 2022. The winning numbers will be...

Daily Lotto Results: Friday, 13 May 2022

May 13, 2022

Powerball and Powerball plus results, Friday 13 May 2022

May 13, 2022

Daily Lotto Results: Thursday, 12 May 2022

May 12, 2022

Daily Lotto Results: Wednesday, 11 May 2022

May 11, 2022
ADVERTISEMENT

iBusiness




iBusiness is a fully packaged business portal, that aims to add as much important information as possible. It is a business portal website – and the “i” in iBusiness doesn't necessarily stand for anything but can represent the innovative ideas spread across the website.





  • Disclaimer
  • Cookie Policy
  • About
  • Contact
  • Terms and Conditions
  • Privacy Policy
  • Economic Calendar

© 2021 iBusiness.co.za - Designed for Business News

No Result
View All Result
  • Home
  • Top News
    • South Africa
    • Powerball
    • Lotto
    • SA Daily Lotto
    • Opinion
    • Motoring
    • Economy
    • Tech
  • Business
    • Business Banking
    • Business Finance
  • Personal Finance
    • Banking
      • Capitec Bank
      • ABSA
      • FNB
      • African Bank
      • Nedbank
      • Standard Bank
      • Other Banks
    • Investing
    • Loans
    • Taxes
  • Forex Trading
    • Beginner’s Guide
    • Regulated Brokers
  • Website Hosting
  • SA Networks
    • Cell C
    • Vodacom
    • MTN
    • Telkom
  • Insurance

© 2021 iBusiness is a fully packaged business portal, that aims to add as much important information as possible. It is a business portal website – and the “i” in iBusiness doesn't necessarily stand for anything but can represent the innovative ideas spread across the website.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.