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Equity Discount Real Estate Investing
Consider these parameters for a real estate deal: Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500 If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus...
Ethics in Business... A Lost Art
While watching Face the Nation one Sunday earlier this year, Bob Schiffer discussed the airline industry, his mother and ethics in business. Like Bob, I think it is a sad commentary today, that we have to police businesses. Whatever happened to...
Getting Started In Investing
Are you ready to open your pathway to financial independence? Well you should be. The sooner the better. But, how do you get started? There is so much to know about investing and the truth is it will take a lot of training and guidance in order...
How To Get Started In Preconstruction Investing?
Through our website, GetPreConstructionDeals.com, the most common question that we receive is “How do I get rapidly started in preconstruction investing”. Realistically, you only need to take three steps on your path from being a “beginner”...
Porter's Five Forces Analysis
If you’ve ever listened to Warren Buffett talk about investing, you’ve heard him mention the idea of a company’s moat. The moat is a simple way of describing a company's competitive advantages. Company's with a strong competitive advantage...
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The Difference Between Investing and Trading
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk
one is prepared to take, and the commitment one can make to monitor
the investments dictate the strategy of whether to invest or trade.
Investing
Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial
appreciation over the long term.
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is referred to as the "buy and hold" strategy.
Real estate would be another example of investing, unless the property is purchased for quick flipping.
Jewelry, art, stamps, and
Associated Websites
collectibles are still other examples of investing where they are kept for a long time in the hope their value appreciates.
Trading
Trading is also investing but the time frame for a return on that investment is a much shorter period, usually a matter of a few days or weeks.
The most obvious example would be day trading where a trader is in and out of a market the same day.
Still other trading takes place over a period from a few days to a few weeks.
Most trading takes place with individual stocks and commodities, with commodity markets being the most predominant vehicle.
About the Author
Rob Hall is a successful futures trader, President & CEO of his own investment firm,
and international author. His books on learning to trade futures markets
are distributed through Sumas International Sales Ltd. View them at
http://www.futuresopps.com/Comm.htm
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