Trading in the Financial Markets

Investing or Trading – Which one is the Most Profitable?

Investir ou Fazer Trading - Qual o Mais Lucrativo?

I couldn't start this blog section without explaining right away what I understand about the difference between being a trader and being an investor.

On other websites and blogs, the reader will certainly find various classifications of trader types and investor types, but I won't go into too much detail here. That is not the purpose of this article, nor this site.

Here, as I mentioned in the first article, I intend to be genuine in my approach, and not care a bit about SEO (what google wants to give me the first page), or anything like that. I will write as I feel like it and not as a computer program tells me to write (this is why most articles on other sites all look the same). Back to the subject.

To begin with, an Investor is also he, a Trader, full stop paragraph.

Trading Financial Markets is an Activity. It is the activity of buying and selling assets on the Financial Markets.

A Trader is also an Investor in the same way that an Investor is also a Trader. So why so much jargon? We are Traders/Investors. Did you get the message?

Of course, after that, came such classifications as: Conservative Trader/Investor, Moderate or Aggressive; Fundamentalist, Technicist, Discretionary, Mechanic. The list is endless. And sorry, but I won't even waste time classifying day trader, nor swing trader, nor position trader. I find it simply absurd. As Master Bruce said “Be water my friend. Be water”. I'm not even going to waste time with this nonsense, sorry. You can always Google these terms. You're sure to find thousands of results explaining exactly what it is. Here, I want to get the reader to earn money, unless it is.

It's all a matter of terms. Okay, I will explain some.

Difference between Fundamentalist and Technicist is based on the type of analysis we do to assets. The fundamentalist uses information about companies/assets to make their decisions to buy or sell those same assets.

The Technicist makes his decisions based essentially on price analysis through real-time charts, also known as Technical Analysis.

The terms Conservative, Moderate and Aggressive serve to classify the risk profile of a trader/investor. Conservative, as the name implies, classifies an individual with less predisposition to risk; Aggressive, classifies the Trader with greater predisposition to risk, and Moderate must be the middle ground.

In turn, to see how ambiguous these terms are, if we ask an expert to define exactly how far an Aggressive or Moderate or Conservative is able to expose themselves to risk, they will most likely get a different answer from each of them. Therefore “bullshit”. We are all Aggressive when we believe, and we all become Conservatives when we've already been scared out of our wits.

Finally, the difference between discretionary and mechanical. A mechanic is someone who has a kind of fixed strategy to approach the market, like an indicator that, when a signal triggers, the trader enters the market, when another signal triggers, the trader leaves the shit. The discretionary makes an extensive analysis of the asset's price and the points where the price tends to "stop" to make entries and exits accordingly, not having a "strategy", but a way of approaching that molds itself to each situation. Marketplace. Discretionaries are said to be the best. Honestly, I wish I could tell you. Unfortunately I inform you that I am a mechanical trader, and I am very happy with my performances in the market. So once again “bullsh*t”. Anyone who wants to sell you “discretionary” in order to “stab” you with a 2000 euro course will always tell you that discretionary is the best and that “it is not possible to make money with indicators”. It's like I tell you. Bullsh*t.

Esses fulanos que vendem os cursos, desafio-os todos para um challenge mensal a começar com uma banca igual. Eles com as suas análises “discrecionárias” e eu com meus “indicadores” e estratégia mecânica e vamos ver quem ganha. Ah, pois, eu esqueci-me que eles ganham dinheiro é com os cursos. Mas pronto, passando.

This text has gone on for a while, but I can only say that both Traders and Investors are traits of those who work in the financial markets to buy and sell assets. Both have profits, which vary according to quality, strategy, decision making, mental discipline, without exactly a ranking of who earns more or less.

In truth I tell you that, there are times when the market gives money to everyone, even a person who doesn't understand anything and sent the money there to “try it”. In turn, there are times when the market doesn't give anyone money. And when I tell no one, I mean no one. Be it to those who are buying, or even to those who are “entering backwards” to sell. Come on someone deny that sometimes it can be between 1 to 3 months without earning money. That's right. 1 to 3 months without earning (and sometimes even losing) money. Because. (Maybe that's why they even prefer to sell courses. It makes more money, and faster.

Yeah, nobody said it was easy. It takes a lot of psychology, a lot of long-term spirit. We need to think like a true entrepreneur if we want to make money in the financial markets.

It's like, for example, opening a store and spending the first few months paying off debts without seeing a penny of profit. Trading is a business, simply that. Full stop. If they sell you the idea that it's a riskier business than others, then I can tell you, more difficult to master all aspects yes, now more or less risky, I don't consider that.

This is simply like putting the money in the bank. For some reason the banks tell you that you have to keep the money in your account for a year to be able to enjoy the interest. Because. 1 to 3 months in which the market does not give money to anyone. It's that concept. Come on, deny it in the comments, I'll love it.

So, if you want to make a living from trading or investing, as I do*, then be prepared to work with an annual “make” and not a monthly or weekly one like most of the easy profit promises on the internet.

*(when starting this blog i'm still not living on investments, attention),

Get ready for a lot of headaches if you are new to trading and markets. But also get ready for one day to have a very pleasant surprise and change your life once and for all.

What kind of Trader to choose? Because. They really want you to waste time having to ask yourself that question. So I tell you this, you'll find yourself reading all the news about the assets you invest in (fundamentalist), you'll find yourself looking at the charts and adding some indicators and testing strategies (technicist, mechanical, discretionary) , and you'll find yourself with an open position that will close in hours because it started going really bad (day trader) and you'll find yourself with an open position all week because it started going well (swing trader) and the following week it will end up not closing the position yet, and the following week, and the next. And the position will be open months (position trader). “Be water my friend. Be water”.

Grateful to have you there.

L. R. Neves.

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