Investing vs Speculating!📈 What is the difference between speculation and investment?

preview_player
Показать описание
Hello everyone! My name is Denis and today we gonna talk about investing and speculating. And I will explain to you where the money comes from.
When I am talking about speculating I mean short term trades like:
1) Future contracts trading.
2) All types of day-trading.
3) Put and Calls with short expiration time.
and 4) Short selling (because technically you can't hold it for the long term...)
If you have bad results on the stock market, I suggest you stop doing day and swing trading and focus on INVESTING
When I am talking about investing, I mean that you will hold something for the long term, and you will receive profit via capital gains and dividends. For the last 25 years, it is not possible to lose money when you buy and hold SPY for 5+ years. If you invest consistently every month it will be around 3 years.
Now we have to talk, where the money comes from?
When you speculating, in 90% of the time you play versus other people. If you make a profit, someone loses. And if you lose money someone making them. What do you think, Is it a good idea to fight with Khabib Nurmagomedov on UFC? 28 Fights! 28 Wins! On the stock market, it is the same! What professionals use: 1) Additional data 2) Better information 3) Faster internet 4) better execution 5) high-frequency trade robots 6) inside information 7) screening robots and lots of other things... I am not talking that short term trading could not be profitable, I am talking that it is very hard to do and you need to spend a very huge amount of money to find your trading style.
When you investing it is different. Let's have a look at an ideal situation.
Chart open!
If you smash the like button, I will leave the link to this table in the comments down below.
We have Company with these parameters:
A company with a Market cap 100 mln dollars.
With sales of around 25 mln dollars.
Shares 100 ml too.
The formula for the share price.
Fixed P/E around 20.
And the profit margin of 20%
And 2 rules:
1)At the end of the year company making buyback for the amount of Earnings.
2) It is a very strong company and sales growth for 20% every year!

Now you know how to turn $1,000 into $1,000,000.
I hope this video was helpful. I enjoy reading your comments please write something in the comment section. Thank you for watching bye bye

00:00 Welcome
00:15 Speculating - short term trades
00:40 Investing - long term games
01:00 SPY Example
01:25 Where the money comes from
01:40 UFC Example
01:55 How professionals will beat you
02:20 Short term trade can be profitable
02:40 Long term investing
04:02 Visa chart Example
04:30 10-30 years Long term Example
05:17 $1,000 into $1,000,000

Greeting Investors! My name is Denis and I am trying to do something special on this channel.
I research stocks and publish my opinion and trading ideas on them. You get hours of research for free summarized in under 10 minutes.

I read all comments Feel free to ask questions and publish your thoughts about the stock market. Sometimes the comments are awesome!

Video too long? Change the playback speed to 1.25/2.0

I use two brokers to trade stocks:
They are both SIPC protected up to $500,000 (including $250,000 for claims for cash)

I do asset management. I am helping people to invest in the Stock Market with CAGR around 20% (management fee only 0,8% per year). Any broker on your choice.
Very simple idea: I am buying only profitable, high margin, growing stock and I am making YouTube videos about my choice!
I research the stock market every day, sometimes I see great deals and I can make additional money via short term trades and options. And I am definitely using money management because I am here for the long term!

☢DISCLAIMER: I recommend you always do your own research. Never invest more than 5% of your portfolio in one stock. I am not 100% right all the time. You could lose money following my advice. Some links may be affiliated. Video content could contain paid promotions.☢

Top stocks:
Рекомендации по теме