Is Limit Order classified as Trading rather than Investing?
Is Limit Order classified as Trading rather than Investing?
Loading saved threads...
puzzled · External communityPost link
External question — Personal Finance Stack Exchange
Author: puzzled
Original post: https://money.stackexchange.com/questions/159299
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I had a
question
, and a
Scholar
has commented below.
Sounds like you're trading rather than investing. Good luck; you're going to need it
So my questions are below( despite my very long and monetary successful personal investing history, I consider my self
student
),
Is entering a
LIMIT
order part of
trading
and
not investment
?
Is trying to
save on interest
part of
trading
and not investment ?
Is only
Market
order
investment
and
everything else is trading
?
Quote
Report
Bob · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob
Original post: https://money.stackexchange.com/a/159304
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
The term trading is not precisely defined. It is not a precise term. The way I think of it is that any time you place an order to buy or sell a security that is trading. As such, if you want to do investing you are going to do some trading also.
So buying LMT with a limit order (or a market order) is trading. If you are buying with the idea that you are going to keep it for a long time, then I would consider that investing.
Quote
Report
Victor Hahn · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Victor Hahn
Original post: https://money.stackexchange.com/a/159313
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
As others mentioned before, the order type (Market, Limit, whatever) is a technicality and has nothing to do with the very subjective question if your trades would be considered "active trading" vs "investing" or "speculative" vs "conservative".
I'd like to add that it very much always appears prudent to add a limit to any order. A market order, in contrast, signals your willingness to buy or sell
at any price no matter how bad
. This is not what you want.
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: puzzled Source score (net votes, not local likes): -1 Original post: https://money.stackexchange.com/questions/159299 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I had a question , and a Scholar has commented below. Sounds like you're trading rather than investing. Good luck; you're going to need it So my questions are below( despite my very long and monetary successful personal investing history, I consider my self student ), Is entering a LIMIT order part of trading and not investment ? Is trying to save on interest part of trading and not investment ? Is only Market order investment and everything else is trading ?
Checking account access…