Investment and Trading


Today's topic is based on Investment and Trading.

Creating wealth and making money in short term are two different aspects - to create wealth, a lot of patience is required. However, making quick money can be hazardous.
Although, if your option is to create wealth then patience is the mother of success!

Moreover, if your intentions are to make fast money then you are considered to be a trader and not an investor. For traders, you need to move fast from one exchange to another- just as how you move from Capital Markets to Commodity Markets and then to Crypto Markets - wherever you find a chance to make quick money.

Whereas in the case of an investor, one can make quality portfolio in shares - commodities, crypto currencies and make money work for you in the long term.

However, for a trader or for someone looking for fast money, this can be seriously injurious to your wealth as it is very difficult to predict the market in the short term.

Capital Markets' Investments are highly wealth creators over a long term period of 8-15 years. But then a very few people tend to create wealth.

As the current trend of trading is short term, investments have taken a backseat and the community is moving from one exchange to another looking for quick money as if there will be no tomorrow.

Many analysts give technical views - I am not against technicals. But in bear markets, fundamentals are very important than technicals. 
Currently, valuations in the Capital Markets are very high as the shares are quoting much higher than their realistic valuation - investors need to book profits and wait for an opportunity to buy on dips.

During boom times, markets overtake fundamentals and that is the right time to sell and book profits. 

There are other fundamental analysts who advise during euphoric times to buy as if one would never be able to buy again at lower levels. One must simply ignore such analysts.

You get advise from people to sell one particular share and buy another which is seriously a bad idea - as once the market cracks, nothing is spared. You will be just paying fees and maybe not earn anything from such an action. Do not fall prey to the wrong advise.
You can keep listening but at the same time you must only follow your own instincts. Also, one must do their own personal research and then make a decision.

Profit-booking is very important and once you exit from your portfolio, only then it can be said that real money is made.

My Personal Opinion -
Stock Markets: Book profit on every rise and wait for a melt down.
Gold: Book partial profits now and buy on dips.
Crypto Markets: Invest XRP token for long term. 
Traders can buy Bitcoin, Ethereum, Monero, Litecoin on dips.
Invest only in good quality ICOs.

Happy Trading and Investing during the coming week! Cheers!



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