What is better!; Trading or Investment?

              Invalid question in the first place!!! Why!? Let's discuss!!

   
              First of all, Investment is style of trading only, but includes longer time frame, that's it! So, we can divide them in day trading, positional trading (which includes some days' or weeks' timeframe), short term trading (includes some months' timeframe), and finally long term trading (includes some years as timeframe, or as some call it-Investment).

               

              So, let's discuss why both the things are necessary in the life of trader (or investor) and how to use both effectively!

               

              The goal of day trading should be to create more frequent profits or return on capital (in percentage % on your initial investment). Which should be reinvested for positional trades and the capital acquired through it should be again invested for long term investment.

  
              One who already have big capital can directly jump to long term investment, but if one wants to make high net worth then day trading and positional trading can do magics. One should choose any of them according to their comfort. Our ultimate goal through stock market is achieving high returns on our capital after all (then the conventional instruments like bank FD etc).

                

              Trading is like active income and investment is like passive income. In trading you have to continually be in action, whereas investment will give you amazing returns without you doing too much; other than have a look on your portfolios once or twice a month.

              

              So according to me, both are necessary parts. Big capital person might ignore trading (who by the way if does trading properly, his big capital also can transform in much bigger capital, as you all know sky is the limit for greed), but for everyone else trading should be done for extra income and that extra should be reinvested in investments for higher net-worth. So it's plus-plus situation for you, because your investments are your profits only earned through trading, so virtually your capital is safe already in the first place. It will eradicate fear of stock market also from your mind because you can't lose anything as your original capital is already safe.

               

              I hope this information can help you! If you liked this stuff, read more of my blogs here "About Choosing Right Broker","For Beginner Trader","About Mistakes of Novice Trader".

           

              Any Suggestions are welcome always. See ya all !!!