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The concept that you have to understand first is that there is a fundamental difference between trading and investing. Public opinion says that these two things have the same substance, but under the parable is expected to give an idea of ​​the differences between them.

You buy a house with an intention to keep the property as a capital and to earn passive income. For that, you rent out the house to the needy.

Over time, the value of the house has generally increased and at the same time you also gain additional income from renting the house annually.

This principle is fundamentally different to trading. Trading in the above example will apply when you buy a house to resell it at a decent price, and profits will be derived from the difference between the purchase price and sales.

Both (investment and trading) has a similar way and can be mutually beneficial, but from the above example we can draw conclusions about the characteristics that set it apart.

The Finance World

Investments in financial instruments adheres to the same principle, by buying assets such as stocks, you will have capital gains when the share price rose, while passive income is the dividends.