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Dentists Who Invest

Should I Trade Or Should I Invest?⁣

Should I trade or should I invest

⁣The age old question.⁣ ?

I guess we should start by defining the strategies of trading vs investing.⁣

Investing is plain and simple the strategy of “buy and hold” or “set and forget”.⁣

It takes advantage of the fact that over long enough time horizons certain assets have historically grown in value and outpaced the rate of inflation.⁣

It constitutes purchasing these assets and holding them for extremely long amounts of time without any active intervention.⁣

Many people have used this strategy time and time again to become wealthy over the centuries.⁣

These are typically only sold after years/decades of holding these assets.⁣

Trading is a lot more of a fast paced style.⁣

It involves dipping in and out of the market at a fast and frequent pace with the objective of increasing your wealth.⁣

It can mean many hours a day staring at screens and making calls to buy and sell in a fast and frenetic manner.⁣

It requires a lot of energy and also TIME.⁣ ⏰

(Or at least it does at the start in order to build the skill of trading).⁣

Many dentists struggle with a lack of time due to other priorities therefore making this commitment difficult…⁣

The IMPORTANT thing to understand is that growing your capital in the markets doesn’t have to mean that you are spending hours in front of the computer every day.⁣

…for some this is a common misconception.⁣

With a buy and hold strategy you can allow you capital to appreciate via the compounding strategy of the markets with next to no effort.⁣

This means that you can continue to go about your daily life whilst also allowing your wealth to have constant and passive exposure to the amazing wealth creation machine known as the capital markets.⁣

Now it CAN be the case that with skill and practice one can eventually become so proficient at trading that you can obtain better returns than what can be obtained through “buy and hold” investing.⁣

But for the majority of people trading is not so practical.⁣

AND “buy and hold” is a perfectly viable, established strategy in itself which has proven results and has made innumerable people wealthy.⁣

(And that includes Warren Buffet ?)⁣

Its also a way more straight forward method that can be picked up with a small amount of education providing the information is good.⁣

If you’d like to achieve financial freedom as your goal and objective then its important to start making SOME progress…⁣

Its a journey and in order to make some progress we need to start putting one foot in front of the other in a series of steps.⁣

Both investing and trading are viable methods to gain financial freedom…⁣ ?

Investing is more steady, reliable and consistent (akin to walking on your journey)⁣

Trading requires a lot more effort put has scope to get us their faster with A LOT of practice (similar to running the journey)⁣

What ever method you eventually choose…⁣

To me it makes the MOST sense to learn how to walk before we attempt to run.⁣

 

*Not Financial Advice

Disclaimer: The content on this blog is meant for informational purposes only and does not constitute financial advice. Readers should seek guidance from a professional financial advisor before making any investment decisions.

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