You may be wondering if Tykr is used for investing or trading.
Tykr is used for investing and here are the major differences between investing and trading.
1) Trading is time-consuming
Investing requires less than an hour per week whereas trading requires more than 4 hours per day. In fact, I know some traders that trade 8 – 12 hours per day.
2) Trading is a job
The fundamental difference between investing and trading is Investing allows your money to work for you whereas trading you are still working for money like any other job. I don’t know about you, but I like making money while I sleep, while I’m enjoying hobbies, and while I’m on vacation. With trading, you can’t do that.
3) Trading is not consistent
When you invest in stocks that are On Sale you have a high probability of making money consistently. With trading, you have a high probability of losing money consistently.
4) 99% of traders lose money
This article on LinkedIn explains why 99% of traders lose money. Trading is a zero-sum game because you are “trading”. Let that sink in. One person is buying from another person. One person claims a profit while the other person claims a loss. On the other hand, everyone can win by investing. If 1 million people invest in a great business, half of those people don’t claim a loss. All 1 million can potentially profit if the stock goes up. Everyone wins! This is one of the many great benefits of investing.
5) The number of billionaire investors vs billionaire traders
How many billionaire investors vs billionaire traders are there? Spoiler alert, there are zero billionaire traders. It’s a game people play to look for a quick buck. It’s like going to the casino and betting on black. If you like gambling and need to “scratch the itch” then go ahead and trade but keep in mind, that very few people build wealth from trading. On the other hand, there are almost 3,000 billionaires in the world as of 2023 which are primarily composed of entrepreneurs and investors. Learn more here on Forbes.
Overall, we don’t have anything against trading. If you do decide to trade, please make sure you have proper training from an organization, association, or teacher with extensive charting and trading experience.
The key to building wealth is leveraging the power of compound interest through investing.