A trade is short term (less then 6 months) and you want to know a catalyst is going to happen. Example: If the Apple stock went down and you know there is going to be a catalyst, like the new iPad coming out and you know the stocks will go up again, then that would be a good trade to get. If you buy a trade and know something is going to happen then you can either wait or buy more. Say you bought a stock at a good price and the price goes down and you know that it was a good trade you might want to buy more, but if not then you should just wait. When the event happens you need to decide when you want to sell and sell it then. If you keep waiting then you get emotionally attached and that's very bad, you usually don't make smart choices if you are emotionally attached. If you wait on your trade, if it goes down around 15% you should buy more, if you have the money, and if the catalyst hasn't happened yet. So then when you think its time to sell you most likely will make more money.
A investment is a long term (more than 6 months) and you think its a good company and know that it will keep growing over time, you don't need to know if a catalyst is going to happen or not. A dividend is when a company gives you money for being invested in them for a long time. The main goal you want to achieve is get the amount of money out as you put in. So once you get your money back you are really using their money. You want to keep waiting and not buy until you get your money back, once that happens you can buy a little at a time. Once it geos down 15% or whatever percent you decide, then you want to buy, if you want to and have the money. If you don't have enough money then you don't want to buy more and want to just wait. But you need to make sure you don't get emotionally attached, being attached could cause you to want to wait longer and longer and soon you would have waited too long and wont get you money back that you could have.
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