Don’t Be Afraid of Trading and Too Impatient with Investing. Combine Them to Be Wealth Builders.

[TradeSmith Daily]( Don’t Be Afraid of Trading and Too Impatient with Investing. Combine Them to Be Wealth Builders. I don’t talk about this often, but my family was saddled with debt for many years. Any bonus went right out the window on a new car or other purchase. One day, I received a wake-up call. We had just purchased a new home. Money was tight. Tighter than it should have been. And I couldn’t pay the mortgage without dipping into my little girl’s college fund. It’s not as if I went broke. But borrowing from my daughter’s future changed something in my wife and me. We began to track our spending and save for the future. And after poring over books, podcasts, newsletters, and anything related to finance I could get my hands on each day, I came to the conclusion that real wealth can be built through two strategies: investing and trading. But too often people use these terms interchangeably and act as if they are the same thing; they are very different animals. Some folks are too impatient and turn to trading, making risky moves in hope of a big score in a short amount of time. Other people are too risk averse, and they completely stay away from the trading side of things. But when used in a strategic combination, you can get the best of both worlds. You can own companies that will provide you with long-term wealth while also making short-term trades that add more money to your bank account in the near term. That’s why I want to take the time today to explain the differences between investing and trading. While there aren’t hard-and-fast rules, the guidelines I’m about to share will help you know when to use each of them. RECOMMENDED LINK [The ONE Trade You Need for Recession-Proof Income (93.3% Win Rate)]( Four months ago, our top income expert embarked on a new venture... Little did he know, the “everything crash” would leave everyone from hedge funds... To crypto bros and retirees... standing naked & bruised as the tide went out. [It didn’t matter! Because his algorithm STILL went 14 for 15 on recommended trades]( — for a ridiculous 93.3% win rate since February! His name is Keith Kaplan, and you can check out the track record here. If you’d like to watch a demo of how this trade works, and unlock the next 3 instant income trades for next month, [click right here](. Investing and Trading When Warren Buffett buys a stock, he sees it as a stake of ownership in a company. The Oracle of Omaha has owned shares of Coca-Cola Co. (KO) for decades. Investing in a company requires you to believe in its future and its profitability. These aren’t positions a person holds for months or even a year, but often multiple years, if not decades. Additionally, investments will often build on a thesis or theme. For example, buying Google back in the early 2000s was a bet on the company and the growth of the internet. In comparison, trades can last seconds, minutes, hours, days, weeks, or even months. However, they rarely last for years. I look at trading as more transactional and driven by catalysts. These catalysts can arise from technical features, such as entry signals from our TradeSmith Finance platform, or news events, such as earnings. Trades are more defined, with a specific start and end. Day traders will often identify a specific price target and stop loss before they enter a position. When an Investment Becomes a Trade When investing in a company, I own shares until something materially changes with the company itself or the long-term industry outlook. Exxon Mobil Corp. (XOM) is a great example of a long-term outlook changing. The energy behemoth was one of the largest companies in the world by market capitalization for decades. As nations developed and populations grew, energy consumption increased. It made perfect sense to own Exxon Mobil... until 2014. That’s when fracking technology took off, realigning global energy markets. At the same time, a broader push for non-fossil-fuel sources began to blossom. When I looked into Exxon Mobil’s future back in 2009, during the depths of the Great Recession, I still saw a vibrant outlook. Now, I can imagine a future without the company. Exxon Mobil is no longer a long-term investment based on a belief in global energy driven by fossil fuel consumption. It’s a trade based on a multi-year outlook and an assessment of geopolitics. RECOMMENDED LINK [Buy Alert For $2 Coin]( The man who picked Bitcoin in 2014 when it was trading for just $369... Picked Ethereum in 2016 when it was trading for just $7... And even warned his followers of the 2020 crash... [Now believes a tiny $2 coin is set to SOAR!]( Maybe even as soon as Thursday, September 1. So if you missed Bitcoin and Ethereum... This could be your final chance at mind boggling crypto gains. Learn how to get in front of this massive opportunity... [Click here now before it’s too late]( Trading Around an Investment My friend and Senior Analyst Mike Burnick is what I like to refer to as a strategy options investor. Mike uses a set of criteria to narrow his focus to companies that meet his parameters, then actively holds positions in those companies while using options to augment his gains. This is what’s known as trading around a core position. Most investors do this with a specific company that they’ve owned for years. Mike does it with a basket of stocks selected by his screeners. I know a lot of investors shy away from trading because they simply don’t want to learn how to do it. Unfortunately, they miss out on some great ways to beef up their total returns. For example, I strategically sell covered calls against core holdings to create an additional income stream on top of any capital gains or dividends. Similarly, I can use other strategies to participate in the rise of a company’s share price over multiple years with less capital down than if I bought shares outright. That’s why I feel that our platform is so powerful. We offer a combination of investment and trade insights that anyone can combine for truly powerful results. Enjoy your Monday, [Keith Kaplan]Keith Kaplan CEO, TradeSmith P.S. You can get more insight into Mike Burnick’s incredible wealth-building system tomorrow night at 8 p.m. Eastern. He’ll reveal exactly how he’s able to generate thousands of dollars every week — even in this down market — at the 2022 Retirement Revolution. [Click herve]( to learn the secret to tapping into this $32 billon opportunity. P.P.S. You’re invited to join our Product Education Specialist, Kristin Magenst, for her free Beginner Bootcamp training session. Today’s webinar will offer a look at how to add, track, and manage alerts for your stocks, cryptocurrencies, and options. Kristin will show you how to create your own templated alerts and review the system alerts you can assign globally across your portfolios, your newsletters, the Billionaires Club, and your baskets. This lesson focuses on the TradeSmith alert features available to members who hold a TradeStops by TradeSmith, Trade360, Crypto by TradeSmith, CoPilot by TradeSmith, or TradeSmith Platinum account. However, all are welcome to attend! [Click here to register]( for today’s webinar. Best of TradeSmith The chart below represents the best-performing open positions over the last two years, as recommended by our software. [Download now on the Apple Store]( [Get It On Google Play]( [866.385.2076](tel:+866-385-2076) | support@tradesmith.com ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishers’ exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith’s content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results. TradeSmith P.O. Box 3039 Spring Hill, FL 34611 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo]