To the uninitiated, trading and investing appear to be the same thing. Mainly, as the term investing tends to be used interchangeably.
A Simple Explanation
Day trading involves the purchase and selling of securities on the same day. Typically within minutes or hours of the initial purchase. The other is called swing-trading. Unlike day trading, swing trading strategies can take anywhere from a few days to a few weeks to work out.
For those who develop the knack, it is possible to manage both strategies at one time.
Investing itself comes in many forms: stocks, bonds, movies projects, real estate, and more. In simplest terms; it is the purchasing of one thing in the hope it will sell for more later.
Cryptocurrency – also known as simply crypto, is a digital currency that is monitored by a decentralized system rather than by a centralized authority. The most prominent name is Bitcoin.
Foreign Exchange or Forex (FX) is the exchange of one currency for another. For example, you may trade the Russian ruble (RUB) for the American dollar (USD). This market is available to individuals as well as institutions such as banks.
5 Things to Consider
1. Learning is essential
The information regarding forex and cryptocurrency is expansive. However, determining what is true vs a scam is difficult. The best way to avoid a scam is to learn as much about the industry as possible.
However, the nature of cryptocurrency makes it more prone to scams. In an industry in which phishing and blackmailing are prominent education is key.
2. Invest only what you can afford to lose
It can be fun to read stories about the superstar who put up their home and won big. Unfortunately, the truth of those tales remains to be seen. Trading and investing can be likened to gambling. Putting money in does not mean there will be money coming out.
3. Reputation matters
When choosing a platform to use pick one that has industry prominence. Social media platforms are just one way of checking out the validity of how a platform works. Use the demo account features for a better understanding of how to use a new platform.
Also, be sure to check out pages such as FAQs and Contact Us. Nothing gives a phishing website away faster than discovering information pages that have been copied and pasted from official sites.
4. Determine comfort level
Some people thrive in a SELL SELL SELL environment. Others are more of a hold-on for dear life(HODL).
If action is what you seek, then day-trading or swing trading may be the best options to consider.
5. Stick to the plan
This includes using stopping measures to ensure that you do not invest or lose more than you can afford. Everyone in the market will experience losses. Adjusting a strategy is one thing changing it is another.
Making the dive into any market can be exciting and frightening at the same time. In the beginning, sorting out the good from the bad is going to be a little confusing. However, the information is plentiful regardless of which strategy is adopted.
Understanding how each strategy operates in a specific market will lead you to the right choice.
