Manila, Philippines

Stocks Trading vs Investing in Stocks

Technical Analysis: Philex Mining (PX)
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If it was easy to make money in stocks, then probably a lot of us are rich (or richer) now. And we would have probably quit our daytime jobs and focused on trading from 930am to 330pm. But it has been a century-old reality that trading stocks is not easy. And I think it will forever will be.

Stock Market Fortune Cookie by bransorem, on Flickr


But investing in stocks is probably easier. Probably just a tad easier relative to stocks trading.

What’s the difference? Well for me, trading is short-term while investing is long-term. Trading may require one to check the stock prices every once in a while, or monitor the prices from 930-330, whereas investing means buying what you think is a good company (lucky if good and undervalued) and giving it time (months or years) to grow and prove its worth.

Traders win and lose in the fluctuations, that’s their kind of game. Whereas investors try not to be bothered and swayed by the intra-day movements. As long as the prospects remain solid and the market outlook favorable, then the investor has no worries.

Lately I have been trying to read investment and trade forums. And it continuously amazes me how a lot of people really spend time analyzing market conditions, price movements, historical charts, and even rumors and speculations. For traders, this is a very big part of the game plan. For investors, maybe not as big, but definitely worth seeing, reading, hearing and considering. And for someone who tries to do both, the daily events and noise can definitely be mind-boggling.

Yes, exciting, but it’s real money that’s on the line here. Hard-earned money. So definitely, stocks trading and investment, is not for the faint-hearted. Both are not surefire ways to get rich, and both require a separate set of discipline and patience.

PS. I think the Philippines lacks the media support in terms of stocks investments and stock market analysis, unlike in the US where we see a lot of TV shows that analyze the technicals and the fundamentals of a stock. No wonder why we have lots of blogs and forums (pala) to deal with this. And again, these guys really amaze me. The dedication and effort.

PSS. Actually, we lack financial literacy in general. But I think we are already taking the baby steps to be a more financially literate country.
Photo: “Stock Market Fortune Cookie” by  bransorem 

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 Investments For Filipinos PH Stock Market

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