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 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.
2) Trading is high risk
Investing is the strategy of buying stocks that are On Sale and allowing your money to make more money (leverage the power of compound interest). This is a safe, conservative, and passive approach. Trading on the other hand is a high-risk strategy of buying a stock or option and selling the same day (day trading) or selling within a short period of time such as 30, 60, or 90 days (swing trading).
3) 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.
4) Trading is not consistent
When you invest in stocks that are ON SALE, you have a high probability of making money consistently. For example, with Tykr, I’ve been earning between 15% and 50% consistently for five years. With trading, you have a high probability of losing money consistently. In fact, I know a specific trader who made 5 percent last year but the previous 9 years he made -10% or less. In other words, he’s dug himself into a hole and can’t get out.
5) The statistics show that 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 loss while the other person claims a profit. On the other hand, everyone can win with investing. If 1 million people invest in a great business, half of those people don’t claim a loss. All 1 million profit. Everyone wins! This is one of the many great benefits of investing.
6) 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” or “feed the addiction” then go ahead and trade but keep in mind, very few people build wealth from trading. On the other hand, there are almost 3,000 billionaires in the world as of 2021 which are primarily composed of entrepreneurs and investors. Learn more here on Forbes.
Overall, we don’t have anything against trading. If you like trading and want to trade, feel free to do so but please set realistic expectations that you probably won’t build wealth with this strategy.
The key to building wealth is leveraging the power of compound interest through investing.