The Difference Between Trading and Investing

The Difference Between Trading and Investing

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There’s no clear line between what counts as trading and what counts as investing, but the two are nonetheless very different practices, and most investors are best served avoiding the former. Why? We answer that question in today’s video.

DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel – those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

50 Comments

  1. seattlegrrlie on November 5, 2021 at 11:30 am

    A coworker who likes to "play" the stock market walks in to see my with my portfolio open, a speadsheet, and reading a document. What are you doing? Reading the quarterly report from diamondback energy. … Why? …

    Investing is about owning a piece of a company that you want to be part of. They buy Dogecoin and argue when to sell. They get excited about the few thousand they made. I smile and look at my dividends for the year



  2. Delwar Chowdhury on November 5, 2021 at 11:32 am

    Thank you! Well explained!



  3. DMS TRADING on November 5, 2021 at 11:33 am

    Great he sir



  4. Demon King on November 5, 2021 at 11:34 am

    I often confusd ThePlainBagel with the dude from InTheMoney…



  5. Chen Al on November 5, 2021 at 11:35 am

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  6. Warg1 its Erbz on November 5, 2021 at 11:36 am

    A lot of investors used to be traders until they grew the fuck up lol



  7. Gissie on November 5, 2021 at 11:39 am

    Bit coin tgey say we dont need lot of money but can ask them to stop when we reach zero.?



  8. Jason Walker on November 5, 2021 at 11:40 am

    They call us gamblers,
    They say say we’re depend on luck
    They claim that no one can beat the market and we’re wasting our time. This is not a real job. We should give up our hobby they say but IF they only knew…that we’re the masters of risk, the essence of entrepreneurial spirit, the liquidity of the economy, We live by our wits eating what we hunt, adapting to the ever-changing jungle landscape that’s the market! And I’M TRADER



  9. Angelica Trino on November 5, 2021 at 11:40 am

    I think traders do stocks as a source of living but investors usually have day jobs .



  10. Mouldy CPU on November 5, 2021 at 11:42 am

    Being a traitor will put you in a difficult situation. So be an investor instead.



  11. Stelios Renios on November 5, 2021 at 11:43 am

    trading=stress .



  12. Tnice Laflare on November 5, 2021 at 11:44 am

    He sound mad



  13. Tim S. on November 5, 2021 at 11:45 am

    I think everyone should go through their "trader" phase. It’s a humbling & good learning experience and it will really show you that all the stress is just not worth it, especially if you’re spending so much time doing it and not benefitting from it. I went through it with options, started off making a lot but then losing most of my profit. Sticking to long term investing in growth companies now



  14. Chiefo Azubike on November 5, 2021 at 11:46 am

    You are the first person to explain the difference well, most of my friends think they are investing whereas they are trading. That’s why they make money and loose immediately.

    There is no difference between a person who buys a house fix it and sell it for higher or someone who buys a cloth for 4 dollars and sells it’s for 5 dollars they are all traders, and trading is centuries old, camels carried exotic wares through the desert.

    Investing however is sending money on an assignment for more money.

    That’s why when u see them 10 years later, most are not rich, they like someone pushing a wheelbarrow in a circle.

    They also love the drama that comes with trading, or most have this Hollywood version of investing in their heads.

    Investing is a boring process of going from financial point A to point B safely



  15. Hanan Hashy on November 5, 2021 at 11:47 am

    For the first time I understand the difference between investing and trading. I watched so many videos on YouTube but this one make more sense. You’re awesome 👏🏼



  16. Xcsczlsb 5558bnm on November 5, 2021 at 11:47 am

    Investing is like milking a cow.

    Trading is like milking a bull



  17. Midi Music Forever on November 5, 2021 at 11:48 am

    I prefer investing.



  18. William Prince on November 5, 2021 at 11:51 am

    Day traders have no more risk involved than anyone else who starts a business; No guarantees of any nature for either. Educating yourself is key, as every millionaire+ will tell you.



  19. Zam Atienza on November 5, 2021 at 11:52 am

    Thx for giving us knowledge



  20. Ningggg on November 5, 2021 at 11:55 am

    Traders look for the price action, no fundamentals, no news, just technical analysis. Investors look for fundamentals of the project.



  21. shahrazade26 on November 5, 2021 at 11:58 am

    I’m somewhere between a trader and an investor.



  22. K Mc Cormack on November 5, 2021 at 12:01 pm

    this guy talks way too much b4 getting to the pt



  23. Daniel Zadimi on November 5, 2021 at 12:02 pm

    I think the pandemic has taught people a big lesson, having one stream of income is not really a good idea cause your job doesn’t secure your financial needs. The pandemic has really set out business minded people from the rest that is why I’m so lucky to be amongest the investors trading with harry_fxvalue on insta as his student it’s been success and happiness since the beginning of my trades!!!



  24. Player Zero on November 5, 2021 at 12:04 pm

    Trade equities, invest in precious metals



  25. riki rex on November 5, 2021 at 12:05 pm

    Good video, straight to the point an easy to grasp.cheers



  26. aaaaaaaaaa on November 5, 2021 at 12:05 pm

    I started day trading crypto currency and its hardcore. The volatitly is so isnane high like 1-5 % up ur down in 5 mins



  27. The Plain Bagel on November 5, 2021 at 12:06 pm

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  28. Max Mocatta on November 5, 2021 at 12:06 pm

    We work for 40yrs to have $1M in our retirement, meanwhile some people are putting just $10k in a meme coin for months ago and now they are multimillionaires power of digital currency.



  29. Kenn claudio capangpangan on November 5, 2021 at 12:07 pm

    Can we use the graph annalysist in our resume? Just asking 😅😅 i’ve been trading since 2019 i would like to know ☺☺



  30. Anonym User on November 5, 2021 at 12:07 pm

    I love this guy! Thanks mate!



  31. Ahmed Alsuleimani on November 5, 2021 at 12:07 pm

    Thank you



  32. Political Roast on November 5, 2021 at 12:10 pm

    Why not do both?



  33. doggo🐶 on November 5, 2021 at 12:11 pm

    As a trader i have only thing to tell you by trading you can’t earn as much as you can earn by investing and waiting for years🙏



  34. oppaiadvocate on November 5, 2021 at 12:13 pm

    daytrader on monday to investor on friday



  35. Menopausal Axolotl on November 5, 2021 at 12:13 pm

    In my very limited experience (a few months) I’ve found that I make the most doing both. I just look for opportunities on both sides.



  36. NutsandGuts on November 5, 2021 at 12:16 pm

    Okey that is the truth behind trading. This video is underrated. It should have at least 20 million views…



  37. NILANSHU MUNDA on November 5, 2021 at 12:17 pm

    Trading is best plz make video on it



  38. dua bhatti on November 5, 2021 at 12:20 pm

    Pakistan is Best and Safe Country for Investment 🇵🇰



  39. Tran Nguyen on November 5, 2021 at 12:20 pm

    When you stop learning , you get left behind . Never stop educating yourself



  40. Kyle Sityata on November 5, 2021 at 12:21 pm

    Simple : Trading is way better



  41. Zuwop on November 5, 2021 at 12:23 pm

    I would say it’s quite easier to evaluate a short term trend while day trading compared to waiting for profit in the long run for a stock you invested in. Day trading will bring in more profit the more money you trade with. That way you wouldn’t have to stack trades. You could do 1 or 2 and sustain your daily income.



  42. Kevin West on November 5, 2021 at 12:24 pm

    Most day traders lose money.



  43. Tulikas LT on November 5, 2021 at 12:24 pm

    I used to be trader in Hypixel Skyblock bazaar



  44. Uncle Rey on November 5, 2021 at 12:25 pm

    Uncle Rey



  45. Abbas Isah on November 5, 2021 at 12:25 pm

    Great work deserve good recommendations,I can’t stop thanking Lisa trade on YouTube for helping me and Educating me on how to trade and gain more profit with her wonderful trading platform Now I’m rich and happy because i can remember I. Only started with
    $2000 now I’m making $8500 weekly
    Thanks to Lisa trade.



  46. Manuel Pro Music on November 5, 2021 at 12:25 pm

    I dont agree with u, when you are trading stocks, crypto or wathever you are indeed investing your money in that bussines (trading bussines), investor is any person that puts money on something expecting a profit, trader is just who is actually trading whatever they wanna trade, but traders that plays with their own money are investors, traders that plays with someone else money are just traders and the owner of that money is an investor, even if u are trading in long term u are indeed a trader and if you are trading with your own money you are an investor and a trader, i hope i was clear, english is my second language so im sorry for any misspelling, and im not a trader or an investor but this is how i think it is



  47. Sanzhi Kobzhan on November 5, 2021 at 12:26 pm

    This two terms (trader and investor) are currently almost the same and nowadays make no difference. Because trader can buy equity with a goal to sell it in a short term, but his bought equity can go lower and trader would have no choice but to to hold this equity in order to get profits later. Sometimes his holding period can be more than a few month and he becomes an investor. Conversely if an investor buys an equity with intent to sell it in a few years can sell his equity immediately when it reaches its fundamental target price. I have seen a lot of cases when investors were buying equities with 20-30% growth potential but those equities were rising quickly on positive fundamental data and investors were selling those equities in few weeks. In todays, rapidly changing financial markets, and extremely volatile stock market there is no difference between trader and investor



  48. USN8591VA on November 5, 2021 at 12:26 pm

    Heres a question for anyone that has the experience to answer intelligently…If I invest in a few companies that have reasonable dividends,,{ 4 to 6 percent} yearly,,and their stock prices hit lots of lows , does it affect the dividend?



  49. Fred Glutz on November 5, 2021 at 12:26 pm

    My Advice: Read Stock Market Tradecraft (google it). There are many differences between traders and investors. An investor should be interested in some fundamentals whereas a trader has little concern in the fundamentals of a company he plans to liquidate in a matter of days or even hours. A trader looks for volatility and an investor looks for stability.  In either case the objective is to minimize risk and generate growth. Whether you are a trader or an investor there are inherent risks involved in establishing any position.



  50. archie fraser on November 5, 2021 at 12:27 pm

    So basically investing is long term and safer and trading is short term and risky however the amount of risk with trading varies with experience and knowledge?could you say that day trading when you are inexperienced is close to gambling at this point?