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Hi guys, hi from Andrea Unger: trading or investing?

This is a question that is often posed and somebody claims that trading is not worth the effort because in investing, at the end of the story, you make more money than in trading.

I’m not claiming this is true or that is true because it depends on many factors.

I just want to compare these worlds and to add my personal experience. I’m a trader, so obviously, I am in the trading world but I would not I would not, not consider investing.

What I believe is that in investing you have a lower level of stress: you are supposed to invest in dedicated structures, funds or bonds or stocks whatever, and you are supposed to allocate your money into these entities and then forget about it, let’s say, and wait; while in trading you are obviously strongly committed and you are on a daily basis involved in the decisions; so when you invest you might have an easier life in waiting for the results; while in trading you are always there wondering whether what you do is right or wrong; well, when you’re having a good period you don’t question anything, but when things go wrong obviously you start doubting.. which is normal.

In investing you put your money into something where you believe that those who are, let’s say, using your money to produce profits are experts and you rely on them, while in trading you might fear you are not good enough when things go wrong and this causes a lot of stress because you are doubting about two things: what you have done, the work, and yourself, your own capacity: so this is a source of stress.

In this first case investing could be considered better than trading. On the other side, in trading you are directly involved and you might have the feeling to keep things under control: you are free to make all the changes that you want, you are free to add strategies to your portfolio, to change those depending on the market situation, whatever, because it’s you.. it’s you doing things. The extreme concept of this is scalping, in scalping you are “pim pum pam” you’re going in and out you don’t care about the direction of the market and you have a very strong feeling of keeping your balance under control or at least of not depending on market fluctuation, because short medium-term moves don’t affect your position.

You’re scalping, you are jumping in and out, so you don’t care about that open position because there is no open position lasting that long to put you in a situation to worry about.

So, scalping could bring extreme benefits but I don’t scalp because I don’t think I could be a good scalper, I don’t want that level of involvement that you need in being a scalper, monitor-involved, mouse-clicking involvement; I am a trader, I would also consider investing, I’m not claiming which one is better.

I am trying to show you that whatever thing you choose, you have to make a careful choice: investing you have to choose the right places to invest, so you have some important decision to make but if you decide to do it on your own, believing to be better than the dedicated Institutes, that’s fine but don’t think you can do it in an easy way, don’t think you can start tomorrow: you need to be prepared to do it properly because if you don’t, you would probably face a disaster.

So you can take your money under control provided you prepare yourself duly; which means you study carefully what you can do and then, once you find out what is the best thing that you feel you can do, you study the best way to do it.

Which is not a short path: don’t believe in those who claim to transform you into a successful trader with two or three lessons; it’s very hard it’s a long path, it can be done, but it needs a careful and dedicated study of all -all- the matters which are involved.

So guys, you can become traders, you need to study hard but you can achieve it, if that is what you wish to do. If you choose that only because you think it’s a shortcut to success you better abandon it because it’s not the way to go.
Ciao from Andrea Unger, see you next time!

 

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Andrea Unger

Known as the only 4-Time Trading World Champion (2008, 2009, 2010, and 2012), Andrea Unger is a full-time professional trader since 2001 and honorary member of SIAT (Italian Society of Technical Analysis, a branch of IFTA). Appreciated author, he is often invited as a speaker all around the world.

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