We find so many people focusing on a product, say stocks and a procedure, trading, but they do not have an investment plan in a place. Most people are trying to make byy what they think is Investing. But trading is not investing, it is only a procedure or technique. We come across a lot of youngsters today who when asked what they do for a living, proudly answer that their business is Investing. They go early to a broker's office when the markets open and remain there till evening. All day they buy and sell stocks. They believe that they are investing but what they actually do is Trading. This is the new breed of traders known as day traders.
There is nothing wrong with trading; these traders also play their part in bringing liquidity to the Markets. Its only when people are not clear about thier own investment plan that all these products and techniques become overwhelming and confusing.
