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> Trading is not investing Keynes' famous metaphor is a competition where you have to pick the most beautiful women from a page of photos. The point is not to
by lordgrenville 7y ago
> Trading is not investing
Keynes' famous metaphor is a competition where you have to pick the most beautiful women from a page of photos. The point is not to guess your honest opinion, but to try to predict the aggregate of people's opinions - the face with the most mainstream attractiveness. A speculator needs to guess what other people think, and which way the price will go. By contrast investing is putting money in something that seems to you to have inherent value.
https://en.wikipedia.org/wiki/Keynesian_beauty_contest https://en.wikipedia.org/wiki/Keynesian_beauty_contest
- nl 7y agoThis is what I thought, but it understates the difference a huge amount. In trading you are looking for signals like "resistance" - which is basically that someone(s) has a incomplete "buy" order at a particular price. Trading is all about exploiting these signals. It's like the difference in architecture and coding, or selecting a sports team and individual ball skills. To make it clear - there are a number of trading strategies where you don't need to know which way the price is moving at all.