Trading or Investing.
People in the trading business for decades are biting the dust
Let's read a piece that nails Trading once and for all.
Building Wealth Through a Portfolio, Not Just Trading
1) Let’s start with a question: have you ever heard stories of people making a quick profit in the stock market and thought, "I could do that!" It’s a tempting idea, right?
2) You buy a stock, it goes up, and you sell it for a profit.
3) Easy money! But here’s the thing—trading alone rarely leads to long-term wealth.
4) Sounds very incorrect.
5) To build something lasting, you need a portfolio. You need assets.
6) The Difference Between Trading and Building a Portfolio
7) Imagine trading is like catching fish every day.
8) You’re putting in time, effort, and taking on risks to bring home your daily catch.
9) It can be exciting, but it’s also exhausting and unpredictable.
10) Some days you might catch a lot, other days not much.
11) And there’s no guarantee you'll have anything to show for it in the long run. What if the river dries up?
12) What if you fall ill in a day of high Opportunity?
13) Building a portfolio, however, is more like buying yourself a lake.
14) Instead of hoping for a good catch each day, you’re nurturing something that grows over time.
15) You create a fish 🐟 pool and let them grow and compound.
16) With patience, your fishes can become a source of abundance.
17) And one day, it may even grow enough to provide you with wealth beyond your daily needs.
18) Why Portfolios Are More Reliable
19) Trading can feel exciting, especially when you win big.
20) But remember, it’s also risky—you’re always making quick decisions, reacting to daily news and market swings.
21) It’s a bit like riding a roller coaster; it’s thrilling, but do you want to rely on a roller coaster for a living?
22) On the other hand, a portfolio grows steadily.
23) Think of it like owning the lake.
24) Sure, it takes time to grow into a lake full of fishes but reproduction is geometric growth and over time the compounding will build abundance.
25) Needless to say there’s no instant reward. And that is precisely why people get attracted to immediately gratification.
26) You may also consider it like the attraction of a beautiful mistress versus a wife who brings in invaluable partnership companionship and creates a family with you which is the ultimate asset.
27) Compounding: The Secret Ingredient
28) When you build a portfolio, you’re tapping into something powerful: compounding.
29) Imagine you start with a small lake , which produces a few fishes in the first year.
30) Instead of catching all the fishes, you farm them. In time, those fishes grow into more fishes, which then produce even more fishes.
31) Soon, you have a whole lake, abundant with fishes.
32) That’s what happens when you invest wisely and leave your money to grow.
33) Each year, your portfolio can “produce” returns.
34) And when those returns are reinvested, they generate even more returns.
35) It’s like your money is working harder and harder for you.
A Real-Life Example
1) Let’s say two friends, Sara and Ramesh, both start with ₹1,00,000.
2) Sara is excited by trading, and she buys and sells stocks quickly to make a profit.
3) Some months, she earns ₹10,000, other months she loses ₹5,000.
4) By the end of the year, she has around ₹1,10,000.
5) Ramesh, however, decides to build a portfolio.
6) He invests in a mix of stocks and bonds, and he doesn’t touch his money.
7) His portfolio grows steadily at 10% per year, so after one year, he has ₹1,10,000.
8) But here’s the trick: Ramesh doesn’t stop. He reinvests his earnings, letting compounding work its magic.
9) By the end of the next year, he has more than Sara—and he didn’t do any trading!
10) Fast forward ten years, and Ramesh’s portfolio has grown much larger than Sara’s, even if she continued her daily trades.
11) Why?
12) Because Ramesh let compounding do the heavy lifting.
People in the trading business for decades are biting the dust
Let's read a piece that nails Trading once and for all.
Building Wealth Through a Portfolio, Not Just Trading
1) Let’s start with a question: have you ever heard stories of people making a quick profit in the stock market and thought, "I could do that!" It’s a tempting idea, right?
2) You buy a stock, it goes up, and you sell it for a profit.
3) Easy money! But here’s the thing—trading alone rarely leads to long-term wealth.
4) Sounds very incorrect.
5) To build something lasting, you need a portfolio. You need assets.
6) The Difference Between Trading and Building a Portfolio
7) Imagine trading is like catching fish every day.
8) You’re putting in time, effort, and taking on risks to bring home your daily catch.
9) It can be exciting, but it’s also exhausting and unpredictable.
10) Some days you might catch a lot, other days not much.
11) And there’s no guarantee you'll have anything to show for it in the long run. What if the river dries up?
12) What if you fall ill in a day of high Opportunity?
13) Building a portfolio, however, is more like buying yourself a lake.
14) Instead of hoping for a good catch each day, you’re nurturing something that grows over time.
15) You create a fish 🐟 pool and let them grow and compound.
16) With patience, your fishes can become a source of abundance.
17) And one day, it may even grow enough to provide you with wealth beyond your daily needs.
18) Why Portfolios Are More Reliable
19) Trading can feel exciting, especially when you win big.
20) But remember, it’s also risky—you’re always making quick decisions, reacting to daily news and market swings.
21) It’s a bit like riding a roller coaster; it’s thrilling, but do you want to rely on a roller coaster for a living?
22) On the other hand, a portfolio grows steadily.
23) Think of it like owning the lake.
24) Sure, it takes time to grow into a lake full of fishes but reproduction is geometric growth and over time the compounding will build abundance.
25) Needless to say there’s no instant reward. And that is precisely why people get attracted to immediately gratification.
26) You may also consider it like the attraction of a beautiful mistress versus a wife who brings in invaluable partnership companionship and creates a family with you which is the ultimate asset.
27) Compounding: The Secret Ingredient
28) When you build a portfolio, you’re tapping into something powerful: compounding.
29) Imagine you start with a small lake , which produces a few fishes in the first year.
30) Instead of catching all the fishes, you farm them. In time, those fishes grow into more fishes, which then produce even more fishes.
31) Soon, you have a whole lake, abundant with fishes.
32) That’s what happens when you invest wisely and leave your money to grow.
33) Each year, your portfolio can “produce” returns.
34) And when those returns are reinvested, they generate even more returns.
35) It’s like your money is working harder and harder for you.
A Real-Life Example
1) Let’s say two friends, Sara and Ramesh, both start with ₹1,00,000.
2) Sara is excited by trading, and she buys and sells stocks quickly to make a profit.
3) Some months, she earns ₹10,000, other months she loses ₹5,000.
4) By the end of the year, she has around ₹1,10,000.
5) Ramesh, however, decides to build a portfolio.
6) He invests in a mix of stocks and bonds, and he doesn’t touch his money.
7) His portfolio grows steadily at 10% per year, so after one year, he has ₹1,10,000.
8) But here’s the trick: Ramesh doesn’t stop. He reinvests his earnings, letting compounding work its magic.
9) By the end of the next year, he has more than Sara—and he didn’t do any trading!
10) Fast forward ten years, and Ramesh’s portfolio has grown much larger than Sara’s, even if she continued her daily trades.
11) Why?
12) Because Ramesh let compounding do the heavy lifting.
