Active Management Vs Passive Management

Do you want to know how to get into trading? Before you start, you should figure out whether you are willing to put in the time to trade yourself, or if you would rather have a professional perform trades for you.

Let’s discuss active and passive management. I promise it is not too hard!

Active management basically means your investments are actively being managed, whereas Passive management means your investments are almost copying a related market index.

Whichever option you choose, be sure that it suits your financial goals and personal lifestyle. If you are knowledgeable on trading in the stock market and have the time to put in a few hours a day to monitor the market and do preliminary research, maybe active management is best for you. If you are busy and do not have the time to continuously monitor the market, or do not feel confident to make trading decisions, then a passive management style may suit you best.

Both methods allow you to generate extra income and help you get one step closer to financial freedom! Just be sure you are choosing the option that is the best for you!