INVESTMENT vs TRADING

Today, I am going to discuss about the crucial differences between these 2 arts in the stock market.
Often people would confuse themselves between these 2 arts. One would often believe that they are investing when they are in fact trading.

One of the difference is the time horizon. When you invest, the time horizon is between 5 years to forever. 'Wa, So long ah!!!!!', that would be the reaction of most people. As I mentioned in my earlier post, investing is just like poker. It is often just waiting for that crucial moment, the point where you can commit a large amount with a very high percentage of winning(that is my style, but some other players believe in playign the bluffing way, which I feel that the downside is way too much than the upside). So, if you cannot even wait for a few minutes for the right combinations in poker, you might as well forget about investing as the time horizon is up to few years!!!!!!!!!!!!!!

Another difference is the way how people allocate their money(notice the word allocate instead of the word invest) when the market moves. Typically, traders' movement is in sync with the stock market movement. They believe in newton's first law-objects in motion will stay in motion.
I am not saying that this approach is wrong or whatsoever. I believe that you should practise at least 2 years before you should try it out. Trading is often said to be a zero sum game which means that 1 player will win when 1 player lose. However, I feel that you got another opponent-which is the commissions fees that you have to pay everytime you make a trade. Which means that technically, the % of you winning is < 50%. On the other hand, when you invest, one MUST NOT follow newton's first law. Instead, one should follow buffett's laws.

Buffet's first law-Invest when market goes down.(be greedy when people are fearful), be fearful when people gets greedy.(notice that I never say sell when it goes up, yes you can sell but you can also hold on to it. I will discuss about it in the future)

Buffett's second law-Returns decrease as motions increase(By the way Issac newton is a dreadful investor. He lost around 3 million dollars in present money in a very bad speculation(NOT INVESTING). Once, he said he can calculate the motions of stars but not the madness of people.

Yup, so these are the differences. Please feel free to comment.

To sum off the whole post, I am not interested in being just temporarily right.(which means earning money from uncalculated risks). Instead, I am interested in being correct for the long term which I absolutely believe that it lies in value investing. A method tried and proven for the past century.