In today’s economy, people are increasingly seeing the benefits of trading and investing. However, despite many thinking of online investment and trades in the same vein, the two are actually quite different. That’s why Shetland residents must know the difference between the two.
How Online Investments and Trading Differs
These markets are similar in that people buy and resell financial instruments to make a profit. However, that’s about where the similarities end. In a nutshell, investing is planning for the long term, while trading is short-term.
When you invest, you can build a portfolio of investments that you manage for years before selling them. On the other hand, the first thing you should know about how to trade stocks is that these trades take place over a few days or weeks.
Why Do People Invest?
Investing is a way of securing long-term funds by steadily growing them. You can set away money in a cash account, with the idea that the interest and inflation will increase the amount. However, you can also purchase assets or shares in a company and keep them for years.
Then, once the value increases, investors can get the payout. Most people who invest do so to save funds for retirement, weddings, or tuition, and they’re focused on understanding why something can grow more valuable over time.
Why Do People Trade Online?
People who trade online typically do so to gain short-term income. It’s a more speculative form of investing and yields smaller profits on a more regular basis. As such, traders are more focused on the value fluctuations of assets and the direction in which their prices will move.
It requires more attention and careful management, but it can also yield immediate profits. Traders often make online trades as a form of their monthly income rather than being focused on savings, though it depends on the trader.
Are There Stocks in Shetland to Trade or Invest In?
Companies like Kistos Holdings, which produces low carbon intensity hydrocarbons, are available on the London Stock Exchange for buying shares. Kistos has a gas plant facility in Shetland and plays a role in energy transitions.
Further, its stocks are slowly increasing in value. In November 2024, shares were traded at 103, and they’re currently trading around 135. Another option is SSE Renewables, which recently completed the Viking Wind Farm in Shetland.
While its shares are currently fluctuating, the addition of a new Wind Farm and other recent projects provides the opportunity for major growth. If you’re more interested in online trading, there are two options in Shetland for you to consider.
You can either join the Shetland Seafood Auctions to buy and sell seafood as a form of commodity trading, or you can complete other online trades. Forex trading, day trades, crypto exchanges, and stock trading are all options.
The Best Option: Trading or Investing?
At the end of the day, whether to invest or trade depends on your goals. Do you want some cash to use for everyday conveniences and expenses, or do you want to set aside a nest egg? Both can be profitable, but you should remember that it can also be risky, as there’s no guarantee the asset you’re investing in/purchasing will increase in value.
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