Conventionally, people used to trade stocks, bonds, real estate, and commodities like gold and other precious metals. Today, however, there are a number of alternate trading forms, such as cryptocurrency and foreign exchange (FOREX) trading. A few other trading instruments include:
- Forward Contracts
- Futures Contracts
- Currency Derivatives
Investing vs. Trading
Although the terms ‘trading’ and ‘investing’ are sometimes used interchangeably, there are some fundamental differences between the two.
People who ‘invest’ are essentially looking to build wealth over several years or even decades, while also benefiting from perks, such as dividends and interest. Investors are in it for the long-haul and will therefore not act according to any short-term market fluctuations.
In other words, investors tend to ‘ride-out’ these peaks and troughs. They are more concerned with the fundamentals of the company or companies that they have chosen to invest in. These fundamentals include revenue, profits, dividend ratio, price-to-earnings ratio, and growth forecasts.
Trading, on the other hand, involves the frequent selling and buying of trading instruments like the ones discussed above. A trader aims to generate returns that are higher than the returns associated with the buy-and-hold strategy that we just discussed.
While an investor might be happy with a 10-12% yearly return, a trader would want to target a 10-12% return every month. A trader makes their profits by purchasing at lower prices and selling when the price goes up. Traders often use technical analysis techniques like stochastic oscillators and moving averages to determine trading setups with a high probability.
Traders are often categorized according to their usual timeframe or holding period, which refers to how often they buy and sell their trading instruments. Commonly, traders fall into one of the below categories:
- Position Traders: These traders hold their instruments for several months or years.
- Swing Traders: These traders hold their positions for several days or weeks.
- Day Traders: A Day Trader will hold their position throughout the trading day; such traders do not hold their positions overnight.
- Scalp Trader: Scalp Traders change positions between minutes (or even seconds), and do not have any overnight positions.
A trader’s trading style or category is determined by factors like:
- Size of trading account
- Trading experience
- The time that they can dedicate to trading
- Risk tolerance
Optimizing Returns with Brown Finance
H3 Sophisticated Trading Tool
Brown Finance has a sophisticated trading tool that offers robust charting indicators and strategies that can help clients perform comprehensive price analyses, maximize returns, and minimize trading risks. This tool, despite being highly advanced and robust, is also extremely stylish, intuitive, and user-friendly.
Compatible Mobile Platform
Brown Finance’s mobile trading platform is compatible with both IOS and Android and allows traders to access hundreds of markets across the globe. With an increasing number of traders now using their mobile devices to conduct trading activities, this application promises flexibility and convenience, allowing users to open, close, and monitor their trades anytime and from anywhere.
Skilled Team of Professionals
Alongside premier trading technologies, Brown Finance also offers a team of skilled and experienced professionals, offering the kind of expert advice that you need to dominate the global markets.
Tight spreads are crucial when dealing trading assets. With Brown Finance, you can trade with immensely low spreads, the best possible prices, and absolutely no limitations. You can trade the following assets with Brown Finance:
Brown Finance believes that clients should have full control over their trading activities, and the self-trading account is a reflection of that belief. Through this account, you can decide the assets that you want to invest in, as well as the investment amounts – instead of being surrounded by a narrow range of choices dictated by your financial advisor. Even though you will still have access to top-class guidance and recommendations from the platform’s team, you will be the only one in the driving seat and will decide where your hard-earned money goes. Not just that, a self-trading account is associated with lower fees for you, the investor.
Contact Brown Finance
Brown Finance offers you the golden opportunity to materialize the kind of trading gains that were once thought too good to be true. To learn more or to open a trading account, please feel free to contact them.