Long Short Forex Definition
ByLong Short Forex Definition
You could ask what is the difference between investment and trade, or you must have wondered: "Am I an investor or a trader? ", Or perhaps not even realize that there is a difference in the first place. In this article I'll explain the difference between investment and trade.
The definition in its most basic form is:
"The investment is an attempt to make money over a long period of time "
"Trade is an attempt to make money in a short period of time"
Now the question is: "How? Lasts long and how short is a short period of time" The answer is: "It depends on you!
What does that mean? This means that you might consider 6 months to a long stick with a population, known as investment, and someone else might consider six months in a very short period of time and they call it business.
However, for reasons of consistency we will adopt the following rule:
"If the time between the opening and closing of a transaction (purchase and sale of security) can be measured in days or weeks, then this is business, and if the time can be measured in months or years, it invests. "
Trade:
In general, traders are only interested in observing the price list of a specific security or currency (usually the candle box), look for role models, or for areas of supply and demand to determine their point of entry, and do so in order to determine its output remain in a transaction of any length from one day (or less) a couple of weeks you take a closer look at the market on a daily basis to check if their trade is still valid or if the closing time.
For an operator to be very familiar with technical analysis, and update on market conditions and upcoming events which may alter these conditions.
For example, if a company "quarterly earnings report" coming in a few days, you can keep close, or as an opportunity to enter a trade or perhaps to close an already open.
Operators can be "Dealers", "Day traders" or "Swing Traders."
Resellers open and close a transaction very quickly, some seconds or at most a few minutes, looking for small profits, but they run tens if not hundreds of transactions per day.
Day traders would keep their positions of dealers, but does not keep positions open for the next day, all before the end of the day.
Swing traders hold their positions for days or weeks.
Find the type of operator is very important to your success. It is very important to be honest with yourself, there is no right or wrong style, it all depends on your personality, style of negotiating to be taken must match the type of personality they have, otherwise you'll be living in the conflict, and this can be detrimental to your trading account.
Initial Investment:
On the other hand, investors rely heavily on the reasons for deciding to buy or not, and if so that traders can make money in UP or DOWN market, investors can make money when prices rise because the decision of investors to invest in the company XYZ is based on the fact if you feel that this company grow and develop in the coming months or years. If so, buy stock in it.
So how do investors decide which company to buy shares?
As mentioned above, are based on fundamentals. What does this mean?
This means that reading the financial statements are disclosed by the company (quarterly and annual), and try to find as many as possible operations within the company regarding its management of future projects on their competitors. Essentially, this is how health of the company and if there is room for growth. This is called Value Investing.
These are the kind of fundamental principles investors are interested in evaluating a possible investment.
Investors do not really care about the daily small fluctuations in the price, they think that if a company has a high intrinsic value, then the price action continues in the long term, so try to buy companies that are very popular and sold at bargain prices.
I hope that this section authorized the difference between investment and trade.
Personally, I think all Wana-be-operator or investor must make a self-assessment very thoroughly to see exactly what is and what their strong suites which will be crucial in choosing your style.
For more information on investment and trade, visit rel = "nofollow" href = http://www.investment-education-diary.com "http://www.investment-education-diary.com/">
Feel free to publish this article on your website, if you post a link to my site "Investment in Education Journal."
About the author:
My name is Bachir Chaaya, and I’m currently working in the Oil and Gas business, but my goal in life is to get out of what is called the “Rat Race” and learn how to be able to generate my own income. For that I have chosen Stocks Trading and Investing to be my source of income.
In order for me to learn trading and investing I decided to build a website where I will publish everything that I learn as soon as I learn it, I will do that in the form of articles.
To visit my website and learn what I have learned so far, please visit: http://www.investment-education-diary.com
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