Trading Vs Investment
There is a famous quote which I recall every now and then, 'There is nobody who has become rich only by saving'. You might wonder why I am saying this but there is a profound meaning to that phrase. The best way is to save as much as possible and let your savings grow eventually through compounding over a period of time. There is a reason why Mr. Buffet quotes that compounding is the 8th wonder of the world. So now to answer the question why should someone go for trading or why should someone just invest in the market and let it grow. Trading: 1. Trading is just like any other business and primary goal is to make money 2. It involves a complex learning curve, where in the initial time spent in understanding the market dynamics and technical aspects almost has nil effect 3.Based on the type of trading(will cover in a separate blog)- time spent will vary proportionately and requires active involvement 4. Requires not so much capital(investment) 5. Highly stressful and wi...