Investment

Classic Investment

The classic investment is putting money into a business that will eventually generate profits distributed to shareholders. This is still the bulk of modern investment, though the returns for shareholders are often stock price increases instead of distributed profits. For this type of investment, one needs to ignore the stock price fluctuation as long as the purchasing price is good because the stock prices or dividends will eventually reflect intrinsic values.  One needs to have a good understanding of a business whose books can be trusted to allow a reliable evaluation. 

Fixed Income

Bonds, CDs, and bank accounts with interest are common types of fixed income. One just needs to find reliable entities that issue these and select the one with the highest interest rate. It is so easy to buy CDs and bonds directly that there is little sense to buy bond ETFs.

Trading

Trading relies on the correct prediction of price change. More and more things are tradable. The prediction of election results is an example of tradable things.

Prices are determined by perceptions that are often divorced from reality. When reality kicks in, the price is corrected. Even when a small portion of concerned parties are divorced from reality, the price will be distorted, hence presenting a trading opportunity.