The Difference Between Trading and Investing.

In this lesson, we're going to cover the 3 main trading or investing styles, which are day trading, swing trading, and long-term investing, which is also known as set and forget. For day trading, all the trades are executed within 1 trading day and all positions are closed before the market closes on the same day. It requires quick decision-making and precise executions, which means you need to be fast on your feet. There is no time to fuck around. The strategies usually rely on short-term market movement, news, and technical analysis. The main pro of it is that it requires minimal starting capital, making it more accessible for a lot more traders. It is considered the highest risk among them all and usually comes with a lot of stress. Now honestly, I do not recommend any beginner to start with this type of trading as it's more stressful. Every millisecond counts and the market is way less forgiving. Next up we have swing trading, which is holding a stock for several weeks or months. This is more of a midterm hold, which allows you to be more flexible with your positions, sometimes taking days, weeks, or even months. The main strategies usually involve the combination of technical analysis and expectation for news, which are also called catalysts, and it's way less stressful as you're usually going to ride the trend. It does, however, require you to have a slightly higher starting capital as you're going to take profits less frequently. Personally, I think this is what beginner traders should focus on as there is a lot more room for errors and it's way less stressful. Decisions are made on a day-to-day basis and not per minute. So even if your executions are not on point, odds are you're going to be okay. And lastly, we have the long-term investor or the set and forget. Now this involves buying a stock that you did your due diligence and just holding it for a long time. Sometimes it might be several years even. Here you're focusing on the long-term growth potential of the company and not the upcoming catalyst. The main strategy here is doing thorough research and knowing everything the company has to offer, understanding the market sentiment and macroeconomics. This usually suits people with bigger pockets as it requires larger sums of money to invest with, and you're going to meet your money in a couple of years potentially. The main benefit of this trading style is you're just buying up shares of companies you like or believe in, and you're not checking your phone every single minute. It's way less stressful and requires little to no time. That is, after you've done your due diligence. Now, again, as I mentioned earlier, I personally prefer swing trading, and I personally prefer swing trading in the OTC. It's more of a midterm investment, and I don't need to be on my feet at all times. I just manage my money and collect a little bit of money every couple of days or weeks, and The best thing I've found is it actually has the best growth potential. Now, regardless of what trading type you choose to do, keep these things in mind. You must trade in a calculated manner, even if it's long-term investments, swing trading, or day trading. That means you need to take into consideration your personality and your financial situation, which are going to be the two biggest factors when making that decision. Ultimately, there is no one-size-fits-all approach, and everyone should start and dabble between these styles. But when you start, just focus on one of them, because by understanding the nuances of every single style, you're going to become better faster, which will result in you making more money. And remember, there is more than one way to reach the destination.