In order to make money from the stock market there are two approaches available which include trading and investing. While trading aims at generating profits by buying and selling companies occasionally, on the other hand; investing aims to create wealth gradually over a period of time. Both trading and investing aims to provide the customers with maximum profits but in a different manner.
What Vital Facts About Trading and Investing Does Staale Fossberg Provide
The main aim of investing is to create wealth over an extended period of time by buying and holding while trading aims to generate profit by frequent buying and selling of stocks. Staale Fossberg is the CEO of MPT or My Private Trade and he has established this in cooperation with Morten O. Andersen at Simray Holdings LLC. He points out some of the vital facts about trading and investing:
- It is important to note that in case of investing, daily market fluctuations do not affect investors as they plan for long-standing period of investment. However, when it comes to trading, the traders tend to get advantage of the daily market fluctuations by selling and buying stocks.
- Staale says as far as extra benefits are concerned, investors tend to enjoy perks such as dividends and bonus. On the other hand, when it comes to trading there are no such extra benefits applicable as it is only for short interval.
- The main strategy of the investors is to create wealth by compound interest and dividend. In contrast traders usually prepare strategy by timing the market, for instance by finding the right time to enter and exit a stock.
Thus, it can be said that investing equals the long term, while trading equals the short term. Investors when investing make the sound investment after carrying out in depth study of a company. Traders on the other hand necessitate active involvement in the market to find the accurate time to exit and enter in order to book earnings.
However, when planning to choose one method, think about the time that one can spend on daily basis on market activities. If an individual can daily spend hours in the market, then trading can suit them. Otherwise, investing is a better option for them. In addition, it also depends on an individual’s knowledge. In case one has interest in reading financials, news, accounting, economy etc. then investing is good option for them. On the other hand, individuals who are good with trends and charts, trading makes more logic.
Before his career as the creator and CEO of My Private Trade, Staale Fossberg had worked as the company director for quite a few companies, namely, Conecto Invest Limited, Jungle Norway Limited, and Superdobro LTD. With the leadership of Mr. Fossberg, My Private Trade inspires its affiliates to believe that they can make income by being good networkers and salespeople, and that they can be part of the world’s major marketplace easily.
