They realize that your capital will not increase in the savings account in the long term. Therefore, you want to enter the stock market trading. Shares and other financial instruments promise high profits, if one hires it right. For years, the trading eToro is possible on the stock exchange for private investors. Thanks to the Internet, there is access to all markets. In addition, many brokers offer in addition to the directly OTC. As the future depositors ask yourself, you should invest in stocks or trading stocks?
The most important thing for you at a glance
- Direct trading on the exchange possible for private investors
- Share purchase additionally directly OTC
- will share as medium to long-term investment
- Assessment of the company more important than price
- Traders are price focused primarily
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- 1. Difference Investor & Trader: investment horizon key criterion
- 2. in stocks What’s invest?
- 3. What investment method is suitable for you
- 4. Conclusion: Investor shares are long-term view
1. DIFFERENCE INVESTOR & TRADER: INVESTMENT HORIZON KEY CRITERION
With equities investment or trading (trade) you can achieve small or large profits on financial markets. There are two different methods, the details you should know exactly. When it comes to investments, to achieve over a long period profits by buying stocks, bonds, mutual funds Plus500 or other financial instruments. A share investor multiplied these gains by reinvested profits in stocks or funds.
Invested capital is held over a longer period of at least five years. In some cases, investors act by buying stocks and principle or not to sell after several decades . Even with long bonds are investments (buy-and-hold investment) possible for terms of up to 30 years are not uncommon. During this time investors generate additional income through various payments in the form of dividends, stock splits IQ Option or interest in addition to general increases in value.
The stock market is a two way street. Regularly, the financial markets move in difficult times. Investors expect rising prices and to offset possible losses again. You sit in this negative market environment. As a share investor, you place great emphasis on market factors such as price-earnings ratio. Short-term negative price trends They accept with serenity.
To trading or trading include recurring buying and selling stocks, bonds, commodities, foreign exchange, CFDs or other instruments.
A trader pursued as a target much higher profit margins than with pure buy-and-hold investments. Many shares Investor is pleased with an annual return of its capital from 10 to 15 percent. The stock trader wants to achieve an increase of 10 percent or more monthly.
For the trader, such a high profit claim means that he, for example, constantly buying shares at low prices and sold at higher prices. As a trader, you can also benefit from so-called short selling of falling markets or falling prices
While you as a buy-and-hold investor ignore turbulent financial markets, you Ethereum Code need to react quickly as a trader on the exchange rate. Stop-Loss offer it the opportunity to sell securities automatically when reaching a lower limit.
Traders are divided depending on the holding period into several categories.
- Who holds its investments for several months or years, is a position trader.
- Who sells plants after a few days or weeks, is a swing trader.
- A day trader is someone who handles the buying and selling of financial instruments within a day.
- Scalp traders hold investments only a few seconds or minutes.
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Investors and traders alike are looking to profit in financial markets. Investors are characterized by the fact that they want to hold investments over a longer period and thus profits. For sellers of short-term profit is the focus to be as constant as possible realized by the constant buying and selling of financial instruments. In this day and age of ever changing financial markets, it may be useful if you are for example a position trader investor and parts.
2. IN STOCKS WHAT’S INVEST?
Although much money is earned shares on the exchange, but not rare success remains off. Affected then wonder why you succeed so little. Why does it create other investors rich from stock trading to be? Incorrect share, bad timing, got out too early or too late … always the same. One of the stock market guru A. Kostolany given to the best sayings is: “Buy stocks and lie down then sleep long.” The catch is: The Guru called neither to be purchased shares nor the brand of long-acting sleeping pill. The latter would be well not to fall in initial losses in the encountered many investors panic.