Thursday, October 17, 2013

Trade vs. Investment

A trade is a short term deal (less then 6 months) that you take and give back. Its more of a short sell to gain money, but you have potential to lose money also. You don't want to sell  your trade until the catalyst (certain event that you bought the product for) is complete. An investment is a long term deal (more than 6 months) that you plan to keep. When the sell on the product goes down you either buy more or you wait. In an investment you don't want to sell your product until it has gone up 15% because then you can potentially make money.

3 comments:

  1. If you can be more clear on the explanation of investment it will help

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  2. Good job! You explain this very well.

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  3. I liked the way you explained catalyst and everything else. good job

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