Thursday, October 17, 2013

Difference between trade and an investment

The difference between a trade and an investment is that a trade is where you plan to make a profit on or in certain times. A example would be that you buy Hershey's before Halloween and sell the day or day after Halloween. So you buy a quick stock and for matter of months when you catalyst or event to make a profit happens then you sell it. An investment is where you buy a stock that you wish to hold for a long matter of time to continuously make a profit over time. An example would be buying Johnson and Johnson. Since people have babies all the time and will need it for a long time you would constantly make money over time. So around the time people have the least amount of babies you would want to buy a lot of stocks and when they are high you can sell stocks to make more money. A good way to short sale would be if you know a stock is either going to bust or boom is to buy a few stocks of the stock and after it booms and bust sell the short stocks back to make a quick buck!

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