10 Investment Tips for Beginners: #3. Don’t confuse investing with trading.
Posted on | March 31, 2009 |
Investing can be viewed as buying shares of an appreciating asset, and holding for the long term time horizon. Buying shares of the Vanguard total stock index fund for retirement, is one example. Another example of investing is buying shares in a business when the share price is close to or less than the value of the underlying assets, but the business itself is sound.
Trading is buying an asset you plan to hold for a much shorter period of time, and may appreciate simply because of momentum or increased demand for the stock and not because the underlying business has increased in value. In general, investing is for the long term, while trading is riskier and sometimes thought of more like gambling.
If you liked this, you may also like:
Jim Cramer’s 10 commandments of stock trading.
25 Investment rules from Jim Cramer.
Cramer’s Top 5 Picks for Stocks to Buy
Cramer’s Bottom 5 Picks for Stocks to Buy
- 10 Investment Tips for Beginners: #9. Don't try to time the market.
- A Simple Secret to Successful Investing.
- How Does Your Debt And Savings Rate Compare To Others?
- Why The Tax Credit For First Time Home Buyers May Be A Bad Deal For You.
- How I Pick the Best Long Term, Buy and Hold Stocks
- Money Saving Tips: 122 Ways To Trim Your Budget
- Investment Pyramid - Speculation
- How to Destroy Your Investment Portfolio
Comments
One Response to “10 Investment Tips for Beginners: #3. Don’t confuse investing with trading.”
Leave a Reply
Popular Posts
Featured Links
Need Help With your Debt?
Incredible DealsRecent Posts
Categories
Archives
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
Sponsors
Scan2Contacts
Search
Get Updates
by Email
Recent Comments
Tags
401(k) 529 savings plan Auto Insurance bailout Banking blogging Building Wealth college savings Cramer Credit Credit Cards Credit score Debt debt settlement Economy Employment FDIC foreclosure getting out of debt How To Income Insurance Investing Life Insurance money Mortgage Rates Mortgages news Opinion Rant Real Estate Recession Retirement Review Reviews Saving Saving Money Savings Scam spending Sponsored Stock Market Stocks Taxes TipsContact
Blogroll
Blog Catalog Visitors
Disclaimer
Unique visits since 2008:
December 30th, 2009 @ 10:25 pm
[...] Follow The Rules 2 Be Aware Of Taxes 3 Don’t Confuse Investing With Trading 4 Tune Out The Media 5 Don’t Tune Out Too Much 6 Pay Attention To Risk 7 Don’t Avoid [...]