One big question we’re often asked…
Is Tykr used for investing or trading?
Short answer…
- Investors use Tykr to make money over the long term.
- Traders use Tykr to create a short list of stocks to make money over the short term.
With that being said, there are risks and differences between investing and trading. Here are some of those risks and differences:
1) Time
- With trading, you are still working for money.
- With investing, you are making your money work for you.
2) Consistency
- As a trader, you may be buying and selling stocks every day (day trading) or over the span of several days (swing trading). Some days you’ll make money, and some days you’ll lose money. In summary, trading does not produce consistent positive returns over the short term.
- As an investor, you’re letting compound interest work for you over weeks, months, and years. As you’ll learn in the onboarding, if you buy On Sale stocks, you have a high probability of making positive returns over time. In summary, investing often produces consistent positive returns over the long term, but you have to be patient. If you are not patient and let money work for you, you can be tempted to sell early and lose money.
3) Risk
- Trading is known to be high-risk. This article on LinkedIn explains why 99% of traders lose money. Trading is a zero-sum game because you are “trading”. One person is buying from another person. One person claims a profit while the other person claims a loss.
- Investing is low-risk if you have the right tool. In your case, you’re using Tykr, so you’re in the right place. On top of that, everyone can win by investing. If one million people invest in a great stock, all one million can profit if the stock goes up. This is one of the many great benefits of investing.
4) The number of billionaire investors vs billionaire traders
- How many billionaire investors vs billionaire traders are there? Long story short, there are zero billionaire traders. On the other hand, there are around 3,000 billionaires in the world who are primarily composed of stock investors, real estate investors, and entrepreneurs. Learn more here on Forbes.
Important notes
- Respectively, we have nothing against trading, but we do have a responsibility to outline the risks listed above.
- If you are into trading, a lot of traders use Tykr to create a short list of hot stocks. For example, traders will use Tykr to narrow 100 potential stocks down to 10 hot stocks.
- If you do decide to trade, please make sure you have proper training with a platform, organization, association, or teacher.