The stock market has generated a wide range of interest as it is seen to be a wise financial move to maintain stability in uncertain days. According to Dr. Yasam Ayavefe, trading and investing differ uniquely. There are two different types of stock market traders with two behavioral characteristics, as well as different approaches to investing and trading. One of these being a digital approach with the opportunity to prosper online.
“Investing – those who use fundamental analysis to determine the long-term value of a company’s stock by analyzing its financial statements (long-term gains)
“Trading – technical analysts and chart readers who believe that all fundamentals have already been taken into account in the price of an asset. (short-term gains)”
Dr. Ayavefe’s views of the stock market makes one feel well-informed due to his expert knowledge within the field. His in-depth understanding and conveying of knowledge enable people to learn about their finances and budgetary stability. It is imperative to understand the difference between investing and trading before making any decisions to enter the stock market; knowledge is vital.
“Your financial ambitions, mental agility, and tolerance for market volatility all factor into whether trading or investing is a better fit for you. Individual stock bets rarely make sense for investors pursuing long-term goals such as retirement. However, this is not to say that actively trading or developing a position in a certain company is a bad idea. Moderation, as with everything else in life, is necessary.” In essence, Dr. Ayavefe states that you need to gain knowledge, know your financial goals, and prepare yourself for the fine details of the market. And his advice on the necessity to dip into the stock game in moderation are words we could see we should all heed.
“By purchasing and keeping securities, investors seek long-term returns on their investments. By contrast, traders seek to profit from the opportunities presented by both increasing and collapsing markets over a shorter period.
Generally, traders earn smaller but more frequent profits. Another critical distinction is the ownership of acquired securities, such as company stock. Investing in shares entails ownership of those shares, i.e. you own a portion of the corporation. By contrast, trading those identical equities on the stock exchange does not constitute ownership. Instead, you trade price differentials by forecasting a price increase or decrease.”
These words may be few, but they hold a great deal of knowledge. Reading these statements a few times over for the entrepreneur in stocks will prove beneficial both to our financial stability and knowing how to trade or invest. Of course, normality within the economic aspect of our world changed drastically. However, a new era of normalcy has entered due to the pandemic, and investing and trading digitally, such as bitcoin, has undoubtedly changed how we trade and invest. Bitcoin is digital money that allows for secure peer-to-peer transactions on the internet.
Bitcoin is a type of cryptocurrency with many avenues to invest and trade. Dr. Ayavefe is an advocate for cryptocurrency as it encourages to a cleaner environment. The investment of cryptocurrency into specific avenues assists in re-planting trees and saving agricultural lands, as well as determining improved interactions when businesses begin to develop a digital plan.
“It has become critical to reimagining an organization’s digital landscape. As a result, businesses will need to rethink their entire lifecycle, from client acquisition and operations through post-sale service and customer service.
While the term “digital transformation” is not new, few people understand what it truly means and how it affects businesses. We can say that digital transformation takes on a unique shape for each business. It is not only a structural and operational change but also a cultural one. Businesses may better serve their customers by using digital solutions to personalize their products, services, interactions, and communications.”
Dr. Ayavefe believes the faster companies and people begin to adapt to digital change; the quicker they will secure prosperity. So, whether we decide to dabble in the stock market, digital currency, whatever our choice may be, we believe it is imperative to listen to Dr. Ayavefe as he has the knowledge we will need to get started.
Educating ourselves on the difference between investing and trading, using cryptocurrency, and the digital transformation in the finance arena is crucial. We admire Dr. Yasam Ayavefe for his extensive knowledge in finance and his words of wisdom.
Dr. Yasam Ayavefe’s projects can be found below: