Trading or Investment what is best. Beginners Video

DoseOfLaugh

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00:00hello viewers welcome to sense chatting today we will discuss about the difference between what is

00:09investment and what is trading so we all be we most of us will be having the same question like

00:16you know people will be telling that uh we are doing trading and people will be telling that

00:21so and so stocks were investing so what is the best thing to do and what is the difference

00:26between these two what is investment and what is trading so in investment this is where we will

00:35allocate some money on a monthly basis to invest in a good growing company like purchasing the respect

00:43to particular companies stocks and holding them for a longer time frame and here in this investment

00:52we don't check these stocks on a daily basis about what is happening in the respect to stock price

00:58whether it is going up or down or how it is moving and all so this will create a a buzz in our mind to

01:08worry about the particular stock price of and also about our investments

01:14also investors do look for stocks that are good in generating revenue and profit

01:21and most importantly which stocks are giving dividend and also bonuses of the stocks so it right now if

01:30you can look in the screen so here we have a good dividend stock where users are much interested in

01:41purchasing to get these particular dividends so let's go to this

01:46yeah and if i see from from last year so i can see multiple dividends it is declared on this particular

02:02stock vedanta stock

02:07so investors are more interested in this particular kind of stocks where they'll get some additional money

02:14by purchasing and holding these particular stocks as a representative of dividends

02:24and also investors can also look for companies fundamental data and see if the company is foot for

02:30the investment so uh this all the data will be available in this money control application

02:36of yeah when i come down here we can see chart of this particular thing and what are the insights and

02:46what are the technicals price and volume of that particular chart and what is the news on that

02:51particular chart and what people are thinking about and what is the research on that particular stock

02:57stock and who are the insiders and what is the corporate action like bonus dividends stock splits

03:04and what are the financials and who is holding these shares and who are this peer peers of this

03:10company and all of this information you can find it in this particular money control application

03:15so when it comes to trader the individual can purchase and sell the stocks with an

03:25odd type of intraday so this intraday is a type of order where it is allow you it will only allow you to

03:33purchase and sell on a particular given day say that you if you can if you are purchasing you should

03:40purchase on a same day and you should sell on the same day of that particular stock whatever you or

03:46stock or asset whatever you are purchasing

03:51so mainly these traders i mean apart from investors these traders mostly they rely on

04:00technical analysis of any asset such as individual stock as i said so these traders use these technical

04:08techniques or analysis on the chart so they find the best fluctuations in the price chart of an

04:16individual stock so let's say if i open this particular reliance chart and so what these traders

04:24do they'll do some analysis on this particular graph of this particular alliance chart and they will based

04:31on this particular graph and analysis of what they are having and what they are believing and based on

04:37that they'll purchase and sell on a shorter time frame such as daily trading

04:51so basically the ratio of these differs like you know so the traders who are trading so the ratio of

05:00their mickey money and the ratio of investors who is investing on a monthly and yearly basis

05:07so these profit ratios will be differing so let's say trader is having around 10 to 15 percent returns in a month

05:15so the same 10 to 15 percent returns of of the same investment will be differing and to an year

05:26so i have made some couple of differences what these traders and investors do

05:31so firstly we'll talk about time so traders usually they may hold the respect to stock

05:39only for a day or maximum for a week coming to investment these investors can hold the stocks

05:47for more than a month years or even decades let's say if an investor sir if a trader is

05:56purchasing a particular stock and selling that particular stock in a in a in a week so mostly

06:05he might purchase over here at this price and first april and then he might he might have sold it in that

06:10particular end of the week and make short time profit out of it but an investor if an investor is holding

06:17around two to three years let's say the stock movement has happened from 900 to 2600 or 2700 value

06:26so but the investor can make multiple entries and exits in this particular time frame he might have

06:34purchased here and exit at the top and again he might have sold it and closed his position by buying

06:41back again at this low so he might have done multiple entries and exit so this is the time reference of

06:51what a trader and a investor is and next is money cycle so like in this how usually money produces

07:04so that is let's say investor purchased a certain amount of stocks over here and he's waiting from past

07:10two to three years so he might have be having whatever stocks stocks he has purchased in the start

07:18so he might have having that much profit in this particular two to three years but coming to a trader

07:24he might have taken multiple entries and exits of let's say he purchased here and sold it here and again he

07:31purchased here and sold it here so this creates a multiple

07:35profit booking from trader end that is why the return from his end is more and the risk is very high

07:49coming to how much you should be involving the third point is how much involvement you should be having

07:56so a trader should be involving his most of the time when the market is in a live trick

08:03and when a market is going on in a live and he should be analyzing his particular chart based on his

08:09technical analysis and he should be taking entries and exits according to his analysis but coming to

08:17investor he he does not need to have or allocate his time in during market hours even after the market

08:28hours he can analyze the chart and based on his assumptions he or she can enter and exit from his positions

08:39and next thing is how these mentalities of will be differing of a trader and an investor

08:48so traders mentality while trading should be fast and quick also they should plan everything

08:54before executing on when to enter and when to exit or mostly we can say when to book profit also he should

09:02be knowing and coming to investor should be quite opposite to trader like he should not be worrying about

09:13the multiple fluctuations that it is happening in the market so let's say it should it it went let's

09:19say investor invested here and it went here and he should not be worrying about his position when it

09:25reaches here and again gone up and again came down he should not be worrying about this particular position

09:31that it the fifth thing is what is the risk management in this particular differences such as trading and

09:41investing in trading there's a huge benefit difference compared to investing that is why the risk is very high

09:48without risk management trading is the scariest choice so risk management should be there and if it is going

09:58against the particular trade that a trader has taken so he should be he should be exiting from that particular trade

10:06and also

10:10if it is going in his favor and how much risk to reward ratio you should get and he should book also he should know

10:19coming to investment the risk to reward ratio is minimal so investors can hold the stocks and analyze them

10:27when whenever they want and exit accordingly

10:31so in the end trading or investment it all depends upon the individual's mentality of how he or she can deal

10:39with the fluctuations in market and also accordingly they should choose what's good for their past so this

10:47is what the differences between the trading and investing so thanks for watching please do like share and

10:55subscribe to sense charting thank you

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