Is it conceivable to be a trader and an investor at the same time, considering that trading and investing deal with markets on a daily basis?
Because there is no absolute right or wrong, the answer to the issue is complex. However, before opting to pursue both paths, it is important to understand the differences between them.
Trading and investing, in addition to having various money-generating mechanisms, use different tactics and approaches. Investing seeks the best approach to develop your wealth in a passive manner, whereas trading seeks the fastest way to gain profits.
That said, this does not mean that becoming a trader and an investor at the same minute is impossible. It is possible, but should you really have to be both?
Nevertheless, if you still want to be both, here are several aspects that you must possess.
Do you consider yourself to have a high time availability? If so, then you might just qualify to embark on these two professions.
The thing is, becoming a trader and an investor consumes lots of times in order for you to succeed. Besides carrying out your strategies in the market, you also need to spend time to get updates, craft your knowledge, and foster your skills.
Let’s be realistic here. Either trading or investment requires a high amount of capital up on your arsenals. Especially, if you plan on being both, you need more capital.
Aside from the available capital, you should also think of the gains. As both ways require times to profit, you better consider that your capital will be enough by the time you can stably earn money. Nothing will unlikely happen in a short amount of time.
Knowledge and Skills
Each path of becoming a trader and an investor necessitates you to own different types of knowledge and skills up on your sleeves. This, of course, includes the strategies, understanding, management, and so forth.
For instance, in trading, you have to understand how to read technical analysis (charts) to trade. Whereas, investing demands you to understand fundamental analysis (reports) to be able to invest properly.
Writer: Doddy D Wahyuwono