Post
Topic
Board Beginners & Help
Re: Trade vs. HODL - avoid traps
by
Patrol69
on 19/10/2023, 05:59:26 UTC
According to me trading and holding are two different things because trading is for short term and investing or holding is for long term.Trading is a business where both profit and loss are faced.If you have a proper understanding of the market and do a good analysis of trading then you can get success in trading.And those who have no idea about trading definitely face losses.On the other hand, holding or investing requires a lot of patience and no one can hold or invest for a long period of time.
Investing and trading are definitely two different things, as you mentioned here there is a possibility of profit and loss in trading, not only in trading there is a possibility of profit and loss but also in investment there is a possibility of profit and loss. Don't you think people who have no idea about investing can lose their money if they invest? An inexperienced person will make mistakes in selecting good coins to invest in as he has no idea about any coin. If a new investor invests in an altcoin in a long-term investment plan, he will lose his money.  Investing requires us to risk money but we will risk money on a coin where our return is the most likely. If a long term investment is to be made then it should be done in Bitcoin because investing in Bitcoin will give you the power to be patient for a long time and you will get enough confidence in investing in Bitcoin which is not applicable to altcoin. 

Trading is a bit like gambling, in gambling you win a day or two and in that greed you gamble with more money the next day but the next day you lose your gamble and lose all the money.  We see the same in the case of trading, if we start trading with a small amount of money, maybe we can make some money in the first two trades, and that profit gives us enough confidence, then we trust and trade with a large amount of money, then we see this huge loss in our trading. 
So taking money risk must be taken for a long period of time in investments that can give you a big change in your money.