While most people get excited about trading, it is the investor that will triumph in the long run. Anyone who looks for capital gain are classified as a trader. Investors on the other hand focus on building sustainable and longer term cash flow and passive income. An investor will eventually have an upper hand over traders because when an investor acquires an asset.
Capital Gain
A trader will keep making new trades by buying and selling while a true investor will make one important commitment and ride it all the way. With each new trade, a trader assumes new risk. An investor looks at the big picture and buys into appreciating assets. With time, capital gain is almost certain without assuming unnecessary risk and emotional stress.
Consistent …show more content…
Most traders do not mind paying as these are part of the business. But the bill runs up pretty fast and these expenses eats into the overall profit. If a trader trades the stock market, the brokerage fees runs up real fast as compared to an investor who buys and rarely sell. The brokerage fees over a year can have a significant impact on your overall return on investment. Likewise in Real Estate, legal fees and stamp duties can take a significant percentage of a trader 's profit. A Real Estate Investor who focus on cash flow and passive income only pays for the legal fees once and enjoy the benefit of the positive cash flow for years to …show more content…
In the Real Estate where the value of each transaction is typically higher, the stress level increases. Trading requires plenty of energy and focus. Some traders that I have met are glued to their notebook because every tick or price movement counts. This type of 'investment ' surely is not suitable for the faint hearted especially when you know that your decision in that very moment will affect your retirement and the financial future of your family. An investor is calm because an investor is not affected by market movements or Real Estate development. An investor 's primary focus is generating positive cash flow with very little
Capital Gain
A trader will keep making new trades by buying and selling while a true investor will make one important commitment and ride it all the way. With each new trade, a trader assumes new risk. An investor looks at the big picture and buys into appreciating assets. With time, capital gain is almost certain without assuming unnecessary risk and emotional stress.
Consistent …show more content…
Most traders do not mind paying as these are part of the business. But the bill runs up pretty fast and these expenses eats into the overall profit. If a trader trades the stock market, the brokerage fees runs up real fast as compared to an investor who buys and rarely sell. The brokerage fees over a year can have a significant impact on your overall return on investment. Likewise in Real Estate, legal fees and stamp duties can take a significant percentage of a trader 's profit. A Real Estate Investor who focus on cash flow and passive income only pays for the legal fees once and enjoy the benefit of the positive cash flow for years to …show more content…
In the Real Estate where the value of each transaction is typically higher, the stress level increases. Trading requires plenty of energy and focus. Some traders that I have met are glued to their notebook because every tick or price movement counts. This type of 'investment ' surely is not suitable for the faint hearted especially when you know that your decision in that very moment will affect your retirement and the financial future of your family. An investor is calm because an investor is not affected by market movements or Real Estate development. An investor 's primary focus is generating positive cash flow with very little