Disclaimer: The following information is for educational purposes only and should not be considered as financial advice. Please consult with a qualified financial professional before making any investment or trading decisions.

The main difference between trading and investing lies in their approach and potential for profits. Trading involves buying and selling assets with the aim of making quick profits from short-term price fluctuations. While it can provide some income, it’s important to note that the chances of success are relatively low, with around 97% of traders either losing money or not making consistent profits over time.

However, it’s worth mentioning that there are some traders who have successfully made good money. However, it is important to understand that these traders have typically gone through a process where they experienced heavy losses or no consistent profits for several years. It requires a significant amount of perseverance and emotional resilience to navigate the challenges of trading. It can take anywhere from 3 to 10 years (depending on the individual) of emotional grinding before seeing substantial success. Therefore, if one chooses the trading path, they should be prepared for the long and challenging journey before reaching the desired level of profitability.

Additionally, it is crucial to abide by the prime rule of never borrowing money to trade or invest. Trading and investing should only be done with the funds that one can afford to lose. Borrowing money to engage in these activities amplifies the risks and can lead to severe financial consequences.

On the other hand, investing has the potential to make you wealthier over the long term if approached with the right mindset. Personal opinion suggests that allocating around 90% of your total investable money into long-term investments, well diversified across various companies and assets, is a prudent strategy. This allows you to benefit from the overall growth of the economy and the compounding effect of long-term investments.

Observing the landscape, it’s evident that there are many wealthy investors, while only a few wealthy traders. This indicates that the probability of making consistent profits over the long term is higher in investing compared to trading.

In conclusion, personal opinion suggests that trading can provide some income, but the journey can be emotionally challenging and require years of perseverance before seeing substantial profits. Investing, on the other hand, has a higher likelihood of making you profitable over the long term, particularly when approached with a well-diversified portfolio and a long-term perspective. It’s important to consider these factors and your own risk tolerance when deciding between trading and investing. Remember to consult with a qualified financial professional before making any investment or trading decisions, and always refrain from borrowing money to engage in these activities.