Cycles Trading Advantages: Trading vs. Investing


Before beginning to trade, you must first understand the difference between investing and trading. The former most often requires much more time and more money than the latter. Investors think about keeping money aside in order to profit over the long term. On the other hand, traders think about using money to profit on a regular basis

Of course both strategies have the same concept--turning a profit. Nonetheless, investing requires more patience and faith that your investment will be rewarding in the end. But without a large amount of capital or a large, guaranteed return, investing simply cannot provide consistent income for a beginner.



What if you don't have a large amount of capital or a lot of time? Well this is the essence of trading. Because stock prices fluctuate on a frequent basis, traders take advantage and make money on a frequent basis.

The most profitable traders capitalize off of volatility in either direction and know that there's so much earning potential!

Cycles trading takes advantage of the many price movements that occur in a short period of time and with the right stocks, you can make consistently large profits. Stock prices don't just go in one direction for an entire year. As you can see in the chart below, RBY jumped from a range of about $1.10 to about $1.50 several times during the year. Instead of buying at the beginning of the year at 1.10 and waiting until the end of the year, you could have bought in a price range from $ 1.10 to $ 1.20 and sold at $ 1.40 to $1.50 multiple times for multiple profit opportunities.