If you are someone who is interested in making more money this year then this is probably not the first article you have read today.
You have probably heard that investing is a great way to make money. But you have also heard that day trading is also a great way to make money. However, you don’t have enough money to get involved in both.
So, you are wondering, which one is going to be a better use of your time and money? Today, we are going to help you work that out.
What Is Investing?
“Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit. You can invest in endeavors, such as using money to start a business, or in assets, such as purchasing real estate in hopes of reselling it later at a higher price.”– Investopedia
There are many different types of investing – you can invest in Cryptocurrency, stocks, businesses, real estate, and precious metals. As well as many other options.
Investments are usually long-term and require very little effort after the initial investment has been made. Assets may be sold if there is a big rise in market value but they are usually held on to for a long time.
If you are looking to invest in you can handle your own accounts or hire someone to handle your investments for you. Some banks even offer investment accounts, through which they handle your investments for you.
Benefits Of Investing
If you want to make more money then you will have to invest in some way – you will either have to invest money or time. Investing is a good option for you if you don’t have the time to spare.
Investing is the closest thing to passive money-making out there.
If you invest in the right assets then you might only have to touch your investment funds once a year. If you are trading in a faster market (like Silver and some precious metals, for example), then you may want to work on your investments once a month.
However, investments tend to be very low maintenance. If that sounds like too much effort for you and you have the money to spare then you should hire someone to control your investments for you.
It is worth noting that if you do not like high-stress situations then you should avoid day trading and stick to long-term investing.
What Is Day Trading?
“Day trading usually refers to the practice of purchasing and selling a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets. Day traders use high amounts of leverage and short-term trading strategies to capitalize on small price movements that occur in highly liquid stocks or currencies.”
Day trading involves buying and selling stocks based on how their values fluctuate throughout the day. The majority of assets purchased by day traders are kept for less than an hour.
While investors look at long-term trends, day traders focus on the small peaks and dips that happen throughout the day. Day trading can be done on any type of exchange or the stock market.
Day traders must be available all day – this is why most day traders do it as a full-time job.
Benefits Of Day Trading
You may be surprised by how much you can make day trading…
However, to be a successful trader then you need to have the time to spare and you need to be able to thrive under pressure.
Day trading involves reacting to the smallest changes in the market. So, you need to be watching the markets for changes. This makes it hard to do if you do not have a lot of free time. However, if you devoted one day a week to trading then you could see a huge return.
You can also trade with smaller sums of money. This can be a great way to get a foot in the door of the investment world.
If you are smart and have the time you could make a lot of money from day trading.
Is trading more profitable than investing? Well, the answer to that question will depend on the type of person you are and how you want to make your money. If you have time to spare then you should look into day trading. However, if you are short on time then investing might be the best option for you.