Trading or Investing I

Recent finanical turmoil had indeed drained alot of traders and investors with the roller coaster see-saw ride... The world finanical markets had seen billions of dollars being wiped out during the sub-primes crisis in the United States with almost every major banks write-off billions of dollars of their assets that are invested in any investment related to subprime loans.

Currently given the voilate markets with indexes having huge swing and gap up/gap down, alot of traders had been wipeout and investors that had been investing at peak are seeing their red portfolio down by 1/4 or even 1/2 of the inital investment.

There are indeed many different between trading and investing. One need to understand whether you are suitable for trading or investing. For trading (short-term), you need to understand technical analysis and have a stop loss and profit taking point. The same is for investment(longer term) not only relied on basic analysis but also technical analysis as well.

I will share more about Trading or Investing as I strongly believe you can apply both to achieve win-win situation either in Bull or Bear market.