Trading Vs Investing

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Before I was a trader, I was actually a qualified investment advisor working at a bank. I advised people on how to grow their money through investing.

And let me tell you the truth: most people think trading is gambling and investing is the only way to build wealth.

But they couldn’t be more wrong.

You see, trading is the fastest way to make money IF you know what you are doing.

If not, then trading is the fastest way to lose money.

But here’s the thing, investing will only make you rich IF you had lots of money to invest in the first place.

I don’t know about you, but I had almost no money starting off.

And that’s where trading comes in.

The beauty of trading is you don’t need a lot of money to make a lot of money.

Why?

Because of prop firms.

You can manage $100k in capital for only $500.

This means if you make a realistic 4% per month that would be $4000. That’s an 800% return on that $500 per month.

So, should you never invest?

No not at all.

In fact, I would strongly recommend using trading profits to build passive income.

Why?

Because it takes the pressure off trading for a living.

You see, in trading you can have losing months, and if you don’t have any savings to pay your bills then you are screwed.

Smart traders build up their investments and don’t buy Lambos - not yet.

So which one is actually better? And more importantly—which one should YOU focus on?

If you are interested in investing and want to understand the fundamentals that drive price action, then check Analytica Investor out, they are great and any visits help support the newsletter! - Atif

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Trading vs Investing – The Real Difference

Investing means buying assets and holding them for years. You buy stocks, real estate, or crypto and wait. It’s slow, but it works—if you have a lot of capital to begin with.

Trading is about taking advantage of short-term price movements to make money quickly.

Swing trading is not investing.

People make this mistake.

Swing traders hold for days and weeks, investors hold for years.

The reality is: trading is fast money, investing is slow money.

And I don’t know about you, but I wanted to get rich ASAP.

Here’s the thing: most people should start with trading.

Investing is great only if you have a decent amount of money to start with. Sadly most people don’t.

Trading gives you the ability to make money first, then invest later.

That’s why I always recommend traders focus on building cash flow first through trading—then using that cash flow to invest for long-term wealth.

Another benefit of trading that shocked me is that it is so easy for traders to tell whether a stock is overbought or oversold.

In fact, you can use the exact same setup that you use on the 5 minute chart on the monthly chart when investing. It works wonders!

For 99% of people, learning to trade is a better use of their time than adding $100 to an index fund hoping to retire at 60 instead of 65.

But the wealthiest people in the world don’t trade the markets, they own the markets.

And as always, if you want to shortcut your trading journey, then I am here to help you here.

Also, let me know which one you prefer by replying to this email!

Until next time,
Atif