How is stock trading different than stock investing?

The major difference between stock trading and stock investing is the time component. Where trading involves buying and selling stocks for a shorter time, investing involves holding them for a longer time span. Traders will always jump in and out of the market according to the technical factors, seeking to earn through market fluctuations. But an investor thinks from the view of company’s long term prospects and holds his positions for quite longer times. Also, there is more patience involved in stock investing than in stock trading. An investor has to stick to his plans and wait till the market reaches that position where his goals can be achieved.
Stock trading is all about buying and selling stocks for a short term to make quick profits from fluctuations in prices .
Whereas,Stock investing involves buying stocks for a long term . A stock investor buys a stock and waits for a long term in expectation of appreciation in the value of stocks.

While the purpose in stock trading is to earn regular returns or generate quick profits, the purpose of stock investing is to build long term wealth .
Stock traders jump in and out of stock within a few day, hours or even minutes. Stock investors hold stocks for a period of more than one year.
Stock trading is something like you really do something like Forex but with the stocks and investing means you do something like you have set of cash which you really plan to invest and that's really damn it for those who do not know;)

Similar threads