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Why Traders Make More Money Than Investors � - Investment - Nairaland

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Why Traders Make More Money Than Investors � by Piroty: 3:17pm On Feb 07
While investment can be a good way to financial freedom and a very good way to boost your finances, there are certain advantages traders have over investors who just leave their money in stocks or whereverand wait for returns.

1. Traders make money even in a bearish market

This is a common knowledge to those who have been in the trading space for a while. Trading allows you make money even when there is 'blood on the street'.

While our counterparts in the investment space are complaining about their Investment going down with the market, traders smile to the bank, especially those who do know how to trade. Although there is also the chance of loosing money when the market is up but those with experience, skill and good risk management will be rewarded

2. Flexibility

While investments have to be timed and also has it's time when things do go well, trading is the opposite especially for those into crypto trading who have the ability to trade 7 days a week 24 hours a day.

While doing so can be desctructive and affect your health in the long run, you can decide the days of week you like to trade and also time of the days that would be most favourable to you. Tradung can be done anytime as long as you have the skills and tools to execute

3. No limit to income

There are no limits to how much a trader can make in hours, in a day or in a year. Not same for investors who most times loose in the long term. Your investment can only make as much as the market is willing to give over a specific period of time.

It's the opposite for a trader, a trader makes as much as he can get from the market with very little amount of money required.

4. Investment is capital intensive

While both requires a good amount of capital to start, trading requires way less and gives way more in the short and long term. Imagine waiting 10years for a 10% profit on a $500 investment account. 10 years to make bearly $50.

5. Losses

In trading you can limit how much you actually can afford to loose per trade especially for traders who understand risk management and the importance of having a stop loss. A trader can have $10k as capital and risk only 1% of that and it won't affect his portfolio.

An investor can't control how much he is able to loose in the market. The market dictates his funds. Let's say the market goes minus 50% in a day on a $10k capital, that's a whole $5k gone in just one day while his counterpart lost only $100 from that minus 50% market.

While a trader can easily bounce back from that loss in a very short period of time, an investor will have to wait for months if not years to be at break even or make profit
Re: Why Traders Make More Money Than Investors � by TreasureHunter(m): 3:42pm On Feb 09
Piroty:
While investment can be a good way to financial freedom and a very good way to boost your finances, there are certain advantages traders have over investors who just leave their money in stocks or whereverand wait for returns.

1. Traders make money even in a bearish market

This is a common knowledge to those who have been in the trading space for a while. Trading allows you make money even when there is 'blood on the street'.

While our counterparts in the investment space are complaining about their Investment going down with the market, traders smile to the bank, especially those who do know how to trade. Although there is also the chance of loosing money when the market is up but those with experience, skill and good risk management will be rewarded

2. Flexibility

While investments have to be timed and also has it's time when things do go well, trading is the opposite especially for those into crypto trading who have the ability to trade 7 days a week 24 hours a day.

While doing so can be desctructive and affect your health in the long run, you can decide the days of week you like to trade and also time of the days that would be most favourable to you. Tradung can be done anytime as long as you have the skills and tools to execute

3. No limit to income

There are no limits to how much a trader can make in hours, in a day or in a year. Not same for investors who most times loose in the long term. Your investment can only make as much as the market is willing to give over a specific period of time.

It's the opposite for a trader, a trader makes as much as he can get from the market with very little amount of money required.

4. Investment is capital intensive

While both requires a good amount of capital to start, trading requires way less and gives way more in the short and long term. Imagine waiting 10years for a 10% profit on a $500 investment account. 10 years to make bearly $50.

5. Losses

In trading you can limit how much you actually can afford to loose per trade especially for traders who understand risk management and the importance of having a stop loss. A trader can have $10k as capital and risk only 1% of that and it won't affect his portfolio.

An investor can't control how much he is able to loose in the market. The market dictates his funds. Let's say the market goes minus 50% in a day on a $10k capital, that's a whole $5k gone in just one day while his counterpart lost only $100 from that minus 50% market.

While a trader can easily bounce back from that loss in a very short period of time, an investor will have to wait for months if not years to be at break even or make profit

I think I agree with you

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