Financial Tutorial:First Aid Solutions To Money Problems

Book excerpt: Is trading stocks, bonds, commodities, real estate a form of investing? Precisely, is trading a security a form of investing? This book strives to let you answer this question. Not only that, it actually takes you through the rudimentary processes of trading them. It attempts to resolve the ambiguities surrounding trading and investing which discourages people from engaging in the act. It uses practical examples to show you how the money market and the capital markets can work to your advantage. The term “day-trading” is seen as precarious. But is it really? What if there were terms like “week-trading,” “month-trading” or even “year-trading” or more so, “decade-trading.” Then seemly precarious nature of trading will be removed. As a result the definitions of trading and investing begin to converge. Investing is the act of committing resources, especially, money to a venture to generate profits. The time element of investing can be as short as nano-seconds or as long as centuries or millenniums. Going by this, the infinitesimal timeline in trading securities should not make that venture any less than investing. So trading as this book considers transcends daily or hourly momentum: it also delves into far longer periods-decades and centuries. Whenever an investment product is bought and sold, it had been essentially “traded” irrespective of the time lapse.