Difference between investing and managing money

Phronesis

Active member
When we invest, many investors think that buying stocks is to do investment. This sentence itself is not a problem, but the key to financial management is to make money by investing. Then whether investors can make long-term and stable profits in the stock market. It is the key to measuring the rate of return on financial management , so what is the difference between investment and financial management?

The purpose of investment is to win profits, but investment is risky, just like the warning sentence often sounded in the stock market: "The stock market is risky, and you need to be cautious when entering the market." I believes that if investors invest all their funds into the stock market, they should be careful that they may lose money without the correct hype model. Investment and financial management is to "move" their own money as much as possible, through money funds, bonds, government bonds, stocks, equity funds, index funds, gold and other wealth management products, so that their money to obtain positive returns, and ultimately can beat inflation, and hope to obtain excess returns. Whether investors buy rising stocks or falling stocks, first of all, according to the character of investors to analyze and judge, some people like to stimulate to catch up, some people like to avoid risk to buy down, investment methods are not the same, for different market ways of making money will be different. Investors should diversify their funds when managing financial affairs, and don’t throw "all eggs in the same basket". By doing so, you can get a portfolio income, even if there is a bear market in the stock market, through fixed income Product investment is expected to preserve other capital flows, and only have the opportunity to increase positions to make money in the future bull market.
 

Josemendez

Verified member
" Money that has not reproduced itself is not worth spending ". This is a quote by Reno Omkri ,and I believe so much in it.

You see investment offers one and opportunity to have returns on the amount invest ,daily or monthly intervals , up and above the total investment.

The benefit with investment is that when you are getting daily rewards from the investment , you can also accumulate them and start another investment ,and before you know it , you will have several sources of income.

People who save money do not know the benefits of investment and what they are losing by saving their money with banks , who in turn uses it.
 
Top