Investing Vs. Trading - Time to Put an End to this Debate!


May it be Twitter, LinkedIn, or Facebook, and now Slack & Discord — many keyboard warriors take a stance — some towards Investing and the remaining on Trading. People must understand that as long as one is happy and consistent in making money by trading assets or investing long-term, both are good. 

For all those who claim themselves as Investors — 

Most of us TRADE our time for MONEY and thereby, invest in the markets to become wealthy!

For all those who claim themselves as Traders— 

Most of us INVEST our time and effort to master the skill to trade assets and thereby make money!

Thus, both Trading and Investing are no different except that Trading is for income and investing is for wealth creation. 

Confirmation Bias:

Investors & Traders try to find a suitable source of information to support their side of the argument. Thus, you can see a lot of quotes by them on Twitter or other forms of social media, reinforcing their message thereby building a herd of followers. 

Let’s look at an example: An Investor (Influencer) posted the quote supporting his view that Investing is the best way to create wealth! Here is the quote:

“If you want good money, you must learn to wait.” — Larry Williams.

Fair enough! I agree that patience is the best virtue when investing in wealth creation over the long term. 

I did not know who Larry Williams was until I wrote this blog. A little bit of search revealed Larry is one of the world’s best traders who has been in the markets for over six decades

You read it right! Larry has been trading for over six decades. I landed on his website and read a bit more about him, and the results have been impressive. When I read the quote, I got the impression that he must be an advocate of long-term investing; however, the same Mr. Larry Williams has also said,

“Success in trading comes from knowing the markets well and knowing yourself better.” — Larry Williams.

So, tweets and other social media posts are not to be consumed as it is. At times, a bit of research shall reveal a different thing altogether — as in this case, Larry Williams was a trader. There are many super-successful traders out there who have made tons of money. Here are some sources for your further reading:

  1. Three World’s Best Traders Alive!
  2. World’s 10 Best Traders of all time!

So there is nothing wrong with Trading assets as long as you have a proper strategy in place and keep your greed in check. 

Want to become a better trader? 

Here are 8 Killer Steps that can make you a better Trader!

Stay Safe & Trade Safe!

Leave a Comment