From the book Investing and Trading: Secrets to Success
Understand the differences between trading and investing, their time horizons, and the role of a strategy.
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Our YouTube channel is originally in Spanish. Some videos may not have an English audio track.
Watch on YouTube ↗Our YouTube channel is originally in Spanish. Some videos may not have an English audio track.
CHAPTER SUMMARY
The idea in one minute
Trading and investing differ mainly in time horizon and decision-making. The former usually seeks nearer-term price movements; the latter focuses on a longer-term thesis. Both require a plan, patience, and risk control.
What to remember
- Your available time matters as much as your goals.
- Technical and fundamental analysis can complement each other.
- A trade that goes wrong does not automatically become an investment.
Put it into practice
Before entering, write down whether you seek a short-term move or a long-term investment. Define what would make you change your mind.
Want to go deeper?
Find the full discussion and examples in the book Investing and Trading: Secrets to Success.
Browse all chapters
- INIntroduction
- TOCContents
- 01The evolution of trading
- 02Trading and investing
- 03Different markets
- 04Fast and slow leverage
- 05Spot vs. derivatives
- 06D.C.A. strategy
- 07Diversification
- 08Base and quote currencies
- 09How money works
- 10Financial market cycles, BTC halving, and strategy
- 11Reading Japanese candlesticks
- 12Support and resistance
- 13There is no exact science in this field
- 14What moves markets?
- 15How to identify trends
- 16Ranges
- 17Japanese candlestick patterns
- 18Moving averages
- 19The most popular technical indicators
- 20Filling the GAP
- 21Trading styles
- 22Binary options: the biggest garbage ever to exist in the markets
- 23Fundamental analysis and fundamentals
- 24Financial bubbles
- 25Before learning to win, learn to lose
- 26An asset’s average price
- 27Extreme events
- 28Price action: strategies
- 29Liquidity and market makers
- 30The DeFi world: benefits and risks
- 31Scams and risks to avoid
- 32Risk vs. volatility
- 33Arbitrage
- 34Grid trading in Spot and Futures
- 35The shortest path is the longest path
- 36The circle of success
- APAppendix
- ENDFarewell
Video from the original 2024 edition and a summary prepared for this website. References and conditions in the video may have changed.
Educational content. Trading in financial markets involves a risk of loss; past results do not guarantee future results.