Investing VS Trading - a $1,000 story

The financial markets have taught me many things including the profitability that comes with practicing patience, this is where the investor role makes a fortune while the other party celebrates tiny gains or possibly sober over lost funds. It's conclusive evidence that investing is far better than spending time in the markets all day, in many ways including health benefits if you know what I mean.

Last week was one to teach me a lot more things about the inner workings of the markets, when it comes to trading, volumes matter and that's both on the market of which you want to carry the trade and your trade size.

Market Volume

When dealing with high profitability, you're looking to embrace markets with high volumes, because the easier it is for the market to swing, the easier it is to make a profit within minutes. This is why many people embrace futures trading because it doubles up the rate of earning per percentage increase.

Trade Size

The bigger the bag the bigger the profits right? This is a simple trading rule, double the bag gets double the profits, but this also applies to the losses that come with it. If we're being honest, futures trading is a game of 50/50 if certain things like risk management and keeping greed away are applied to trade, because the market movement is a gamble, and thus takes a gambling effect.

The $1,000 story.

How does $1k a day sound? Great, right? It's almost magic money when once one backtracks the days it previously took to acquire that! The ZIL/USD was quite an awesome market to find oneself last week. The general market was becoming greener, this pair made magic on futures and printed a hundred dollars plus for me with a $500 trade size, so that was basically making 200% in a single day.

So how about we grab some coffee the next day and continue? Well, that was a welcome package that probably should have been set aside for the rainy days but no I didn't and it all went -700! (South as guessed)

Compare this to an investor…

An investor is a carefree guy in this context, trading is definitely a fool's game, investing is the deal, because it's sustainable and quite flexible. When I did my maths on the trades I made,the profits and all that, I realized I'd have been bagging a higher profit by just holding ZIL right from my first purchase to the last trade off, so $1,000 was actually cheap money, crazy right?

So when you lock in this idea, your chances of a better life is assured. Khal said something similar on his tiktok and I honestly agree, sustainability is a better choice to a life based on speculations. So instead of trading with most of your wealth, invest it and watch it grow… Crypto is not a get rich quick scheme, it's a field of sustainable investment, don't rush the process…!

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