What exactly is meant by Investing? What are the pros to Investing? What is Trading? For more updates follow us at: http://www.academyft.com/blog http://www.twitter.com/AcademyofFT http://www.facebook.com/academyft

1. The Academy of Financial Trading
Investing Vs. Trading
www.academyft.comsupport@academyft.com

2. Stop losses explained
Any Advice or information provided by the Academy of Financial Trading is General Advice Only - It
does not take into account your personal circumstances, please do not trade or invest based solely on
this information. By viewing any material provided by the Academy of Financial Trading or using any
information or tools you agree that this is general educational material and you will not hold any person
or entity responsible for loss or damages resulting from the content or general advice provided here by
The Academy of Financial Trading, its employees, directors or fellow members. Futures, Contracts for
Difference (CFDs), Options, and spot currency trading have large potential rewards, but also large
potential risks. You must be aware of the risks and be willing to accept them in order to invest in CFDs
and leveraged forex markets. Don't trade with money you can't afford to lose. No representation is
being made that any account will or is likely to achieve profits or losses similar to those discussed in
any material provided by the Academy of Financial Trading. The past performance of any trading
system or methodology is not necessarily indicative of future results.
Risk Warning

3. What exactly is meant by Investing?
Investing is more common than trading for most participants
in financial markets – we feel this is because it is more
palatable
Investing Vs. Trading explained
Investing vs. Trading
It is a method of gaining from or capitalising on a rise in price
or value of a given asset class
Most Investors use stocks – this is largely due to their
capacity to increase steadily and gradually over time
It can be felt to be simpler in concept and hence is
favoured by most. But we feel this needn't be the
case if one is open to a comprehensive education

4. Investing Vs. Trading
What are the pros to investing?
Less management – less administration, easier to
gauge performance with little work
Can be seen as a guaranteed way to earn in the public mind
Most any potential investor is familiar with the factors that may
cause a company’s stock to grow in price – sales results, P/E ratios,
etc.
Investing Vs. Trading explained

5. Trading – capturing all movements, increases or
decreases!
Trading can capture all price movements - rising prices or falling
prices
We believe this is a more realistic approach given that prices will
not always rise
A trader has thus more opportunities with time
Investing Vs. Trading
Traders capture both upward or increasing
price movements and downward or
decreasing price movements! Which is best?
Investing Vs. Trading explained

6. Investing Vs. Trading
The Conclusion and Comparison
An investor will typically buy a small lot
size or volume of the market he is
speculating upon as he is sure that the
price increase can justify the same
He believes that the price could increase over
time by levels of over 100%
What if this doesn’t come to pass? Have we
missed other opportunities?
The trader capitalises and exploits both the rise
and fall of price – he wins either way with a
proven system
As such, he sees more opportunities than
the investor per time.
He can also exploit less classical markets like currency pairs,
commodities and metals which can be tougher to analyse using
classical investing techniques

7. www.academyft.com
support@academyft.com
Contact us anytime on
Ire: +353 (0) 1 553 0174
UK: +44 (0) 207 760 1614
USA: +1 347 627 0001
Keep Learning!
academyft.com