MORE MONEY vS QUICK MONEY.

MORE MONEY Vs QUICK MONEY:

To Make More Money many people comes to the Share Market and UN-consciously they Jump for Quick Money  by which they are Missing Profits or Having Insufficient Profits or Going under Loss.   Why it is? Is it unique in this class of asset?  Certainly not.  We should not rush to match Speed Money with Quick Money opportunities by leavingignoring More earning opportunities.

Speed Money takes away our Moral values and Future by giving Temporary Comforts.

Quick Money takes away our Future and Peace by giving Temporary Money.

More Money (High Value Returns) takes away Stability, if you are not cautious. 

If we analyse Why & How it is happening, ourselves can get many answers. In this process, the systematic analysis can give answers to many faulty notions like; manipulative, lottery, luck, gambling, confusing, greedy etc. 

After knowing the basic knowledge about: What are Shares? Who Operates? How it Operate? What is Basic Requirement? generally many people start trading. They follow (either brokers or media), feel easy within few transactions and turn as over confident (because buying & selling done within seconds, money changed hands without any strain, looks very transparent, most data available without any hassles.) 

As per psychology, once human being becomes over confident, he repeats his actions without any check.   Same thing happens in share market also.  If he wins:: he crosses his Limits in Investment, Price Selection, Product Selection, Time of Investment etc.   If he loses trades: he Repeats blindly, he Challenges, he Multiply Quantity or he try to Average price In Reverse Trend also with his Increased Greediness.

To over come this, first we have to classify us: whether we are Investor or Trader?  This classification itself will focus/question us on required ABILITIES & KNOWLEDGE.   Once we got clarity on this, automatically we can change our attitude towards Investment & Trade.  

Let us see common difference (meaning) of Investment and Trading: 

Investment: In finance, an investment is a monetary asset purchased with the idea that the asset will provide income (appreciation of value) in the future and be sell at a higher price.

Trading: In financial markets, trading mean performing a transaction that involves the selling and purchasing of a security/commodity.

Even though in both actions buying and selling is common: In Investment, we have additional key words like FUTURE, INCOME (APPRECIATION).  Where we misses FUTURE & INCOME in Trading. 

This is Mostly True in Share Market, unless you have extra Qualifications, Capabilities along with Right Attitude.

Let us see major attribute differences between Investor Vs Traders:

Investors                                                     Traders

Investor Starts with Spare Money.                Traders Starts with Urgency for Money.

Investor Limits as per size of Pocket.            Trader extend his limits that his Pocket weight.

Investor works/aims for Future returns.         Trader works/aims for immediate returns.

Investor will measure with Fundamental value.   Trader mostly works with Trend. 

Investor will aim for Returns than Time.          Traders will be forced time bounded Returns.

Investor's cost of buy will be lower.               Traders cost of buying will be higher.

Investors looks head for more profit.             Traders are forced to looks ahead for SL. 

ONE COMMON FACTOR ONE SHOULD KNOW BEFORE BUYING:

WHY HE IS BUYING THAT PARTICULAR STOCK?

HOW MUCH  PROFIT HE NEEDS?

WHEN SHOULD SELL?