Vivektrader and SmartTrade , both mentioned valid points here.
As Vivektrader sir said, the compounding returns can be better translated in investing compared to trading as because scaling capital is very tough in trading.
Smart trade sir clearly said investing is what can make rag to riches but the source of investing capital can be accumulated through trading if someone doesn't have any other income source.
Few of my inputs from self experience here:
1. The reason we can become rich in long term basis in investing better compared to trading is, in my view "providing value".
Somewhere read Warren Buffett said he looks for value in anything, stocks, companies, assets etc. Whatever the instrument may be, but if it provides value to people it could be to mass or to a segment, but as long as it provides value we can count it in long term basis. He even find Gold as not producing value and not suitable for investing.
We don't need to oppose Warren buffett on his Gold opinion, because we clearly see over the years, Gold prices appreciates only up to the inflation term, not anything more while few stocks become unimaginable multibaggers.
Even as an investor what we doing is, we provide some value to the company so that they can keep on working on their terms, ideas. Thats why we become rich or our money becomes mutiple because we provide some value there.
So in trading what happens is, we clearly don't provide any value to anyone, (may be to Govt
because they charge hefty taxes in each contract sheet). We just look for some margin (difference between buysell, we call it as profit) nothing providing value to any stock, company or to anybody else.
Even I read somewhere that Dhirubhai ambani liked the first profits he received from buying a tin of groundnut oil and selling it in road side for a margin. He liked and continued doing many buy and sells for a margin and later his yemen job gave the idea of oil refinery where even the margins are very bigger.
So to write in short, one should clearly need a capital to invest to become rich. For that capital need, we should hunt for margins like a professional hunter with thrust, aim and execute.
There is nothing wrong in hunting for margins (for raising investing capital) in trading field. These observations in fact bring calmness in my mind while trading because we here in trading only looking for margins or say profits which is reasonable and nothing kind of becoming a millionaire via buying call/put options.
such reasonable expectation put us in calm status and trade for a realistic goal. Simply said, there is a way here to become rich, that is stock investing, as such way is there, there is no necessary for looking for riches through trading.
To mention in numbers, such margins or needed capital for investing, must be around 1 to 10 lacs per month at least, else even through investing it would become hard to hit 100 cr clubs in future!!! So look for income source of 2 to 5 lacs per month, it may be trading or your any other business and invest it in stocks with careful selections.!!!
All the best for sudoku1 sir in his rags to riches journey, and not just sudoku1 sir, but for all of you because everyone is here looking for that only!!!