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Hey, it’s Marina, the trader chick, and today I’ve got a question for you. Do you know the difference between trading and investing? Some people actually don’t. So today, my goal is to simplify that for you, for you to fully understand the difference and decide if you want to be a day trader or an investor, or you can be both. But if you know the difference, you’ll at least know to apply a different strategy. So let’s begin.
But first, remember, subscribe below, and I want to hear from you. Let me know. Do you know what the differences between trading and investing? And even better, which one are you? So comment below and remember, subscribe and hit that notification button and let’s be going. All right. It’s Marina, The Trader Chick here to simplify your day trading. OK, so what in the world is day trading, and why is it not investing? So this is really, really important.
I get a lot of people will say to me, “oh, I want to learn how to invest”. Meanwhile, I’m mainly a day trader, so I want to really give you, like, the real difference so that you guys understand and can apply it to what is best for you. So day trading is completely unlike investing. And the number one reason is you do not, you do not want to diversify when you are investing. You have a portfolio with a lot of diversification.
Right. You might have different stocks, you might have indexes, you might have real estate. There’s so much. But with day trading, because we’re focusing on the intraday, on the actual one day when you’re in and out of trades in that specific day, if you don’t really get all the lingo. I have a really great video for you. So in day trading, you are in and out of positions that very same day.
So you don’t want to diversify because you really want to focus on what you are trading, what you are profiting from. Unlike investing, which is much longer term, and you could have many of this where you have a lot of diversification if one goes down, let’s say one week, another one can go up another week. But you are looking at the average, the overall. But for day trading, it’s the one-day on diversifying, no one rule.
Similarly to like a music student. Right. For instance, you want to focus on one market. Right. So imagine your child comes over to you and says, hey, mama, papa, I want to learn how to play a musical instrument. And you’re going to be like, oh, awesome. Which one? Well, I want to learn how to play the piano. I want to learn the drums. I want to learn the guitar.
And I want to learn how to play the flute. And you’re looking at them, but they’re so different. You should first learn one and really, really mastering to move on to the next. And that is literally what day trading is about. Master that one instrument, that one instrument, that one market that truly brings you the money profitably, consistently every day when you are day-trading and then learns the next market. So remember one instrument, one market, no diversification.
The other thing is investors. They really care about the companies that they are investing in to see them grow because they’re going to go through ups and downs. Right. For instance, take Apple or Amazon. You know, those are solid companies, but on a daily basis, weekly basis, they could have their website and flows. Right? They could go up or down, but you’d care about the company, you know, the fundamentals. You’re seeing what they’re doing in the future.
It’s OK because you are investing OK. Unlike day traders, we don’t care at all if it’s going up or if it’s going down. Why? Because we’re only looking at what’s happening at the moment. And to be honest with you, we can make a lot of money going up, but we can make you probably even more when the companies are going down. We don’t care about their overall health. We care only about what’s going on right in front of us during that particular day.
And that’s why it’s important to focus on that one market, because you can really understand and really see what’s going on rather than be scattered all over the place because each market works very differently. Like you would not teach a piano student the same as you would teach a flute students. Right. You would focus on different things. Same thing for day trading. OK, so that’s pretty much the essence of it, the gist of what are the differences between day trading and investing.
If you guys have any questions, again, you could comment below, or you could email me at thetraderchick@Gmail.com and subscribe to my channel because I’ve got lots of awesome, awesome videos exactly like that to simplify your day rating. All right. See you guys.