1) Basic
Trading or investing? This debate is like arguing whether fried noodles or soup noodles are better -- neither is wrong, but each has its right time and place. Let's break down the differences so you can choose what suits you.
Trading is the activity of buying and selling stocks short-term (daily to weeks) to profit from price differences. Investing is buying stocks and holding them long-term (months to years) to benefit from company growth and dividends.
Trading is like flipping second-hand phones. You buy a cheap phone, clean it up, and sell it for more within days. Quick profit, but you need to constantly find deals and there's risk it won't sell. Investing is like buying property: you buy a house, live in it or rent it out, and after 10 years the value has multiplied.
Investor example: bought BBCA at Rp5,000 in 2010, held until now at Rp9,000+ -- nearly doubled, not counting yearly dividends. Trader example: bought ANTM in the morning at Rp1,500, sold at noon for Rp1,540, profit Rp40 per share. Small, but across 100 lots, it adds up.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Fair Value CalculatorWhich is more profitable, trading or investing?
Depends on skill and discipline. Data shows most retail traders underperform long-term investors. But highly skilled traders can generate higher returns. For beginners, long-term investing is generally safer with more consistent results.
Should beginners start with trading or investing?
For beginners, start with investing. Begin by buying blue chip stocks with strong, enduring fundamentals. As you learn, you can gradually explore trading. Don't jump into trading without a solid foundation.
