Traders vs. Investors: Who Makes More Money?

This is one question that has always tugged at the hearts of both traders and investors. Some argue that the trader makes more money than the investor, while the other set argue even more that the investor makes more money. To answer to your curiosity, we have taken our time to go through different research materials on this subject as well as listen to the voices of enlightened people at reviewsbird.co.uk.

By the end of this article, you’ll be able to decide on your own if trading is the best thing to do or, if investing money is better. Before you jump in excitement, we would love to take you through a brief journey on investing and trading. In trading, your money is at stake, you buy commodities (stock, shares, crypto and other related sales and purchases belong here) with the intention of selling them off to prospective buyers when their prices begin to ride on the crest of the waves.

But in investing, you don’t do that. You pull your resources together with a group or a single individual that understands the market situation. This individual is usually a seller in need of more funds for business or just expansion and partnership even. When the individual sells when prices peak, he makes a profit From this profit, he gives you the dividends of your investment in accordance with what you both agreed on. From this scenario, you would agree with us that the trader obviously makes more money.  This is due to the fact that he is in major control of the business, and no matter how well the business goes, the investor would only get the dividend agreed on initially.

When trying to decipher who makes more money between the investor and the trader, we should also note that the trader is more knowledgeable on money circulation as well as on the fluctuations and risings in the market. This alone makes the trader a step higher than the investor who would only let his money out when he thinks the trade is most favourable to him. When the percentage earnings of the trader and the investor are compared, the trader earns more than the investor. The investor only gets a certain amount of the profits of a business.  Even though the trader earns more, he is also exposed to bankruptcy as well as greater risks than the investor whose risks are very limited.

Conclusion

It is a known fact that trading lords it over investing. This isn’t meant to be a discouragement in any form of course. We all can’t be traders. Before delving into any of the two, the best thing to do is study your own strengths and weaknesses. If you desire to spend little time in business, investing is the best for you.

When you invest, your money works for you. Also, if you’re more interested in financial statements than in the actual running of the business, you should invest. Though investing demands commitment from you and your money for a long period of time  it’s not too demanding that it would put a strain on you.

When you also notice that you are more of a logician and a person who keeps a lot of tracks of market systems, you should trade. Trading would surely help you put your skill to great use.