How trading is different from investing ?

#2
In trading a different outlook could be see as intraday and you do not have to wait for results,but in investment you have to wait and see the position according to which you have to invest for long term.
 
#3
how trading is different from investing and which one is more profitable?

A trading is short-term whereas an investing is meant for a long-term horizon.

A trading involves a considerable knowledge about the technical analysis (chart study) while both the fundamental & technical analysis can be used in making investments in stocks.

When it comes to profit it depends upon your knowledge and patience. Because both the methods can make you rich or beggar as the situation goes.

In my opinion, investing periodically and religiously is a better way of investing in the stock market, this method is called as SIP. Good luck!
 
#4
Investors and traders seek profits through market participation. In general, investors seek larger returns over an extended period through buying and holding. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter time-frame, taking smaller, more frequent profits.
 

Pradeep Narayan

Well-Known Member
#5
how trading is different from investing and which one is more profitable?
When you invest in a company, you are interested in the consistent returns that the company will provide in terms of dividends. You focus on the value of the company & its management.
If you buy shares with the intent to sell them at a higher price - maybe some years later - you are trading. Here you look at price attractiveness and capital appreciation from perceived future demand for the company's shares.
 
#6
Trading and investment both are different, it depends on our goal. in trading, you can make more money but the risk factor is also high and if you start investing in the market for 5 years goal or 10 or 20 years goal. the return may be lesser compared to trading.
 

Maccy

New Member
#7
When you invest in a company, you are interested in the consistent returns that the company will provide in terms of dividends. You focus on the value of the company & its management.
If you buy shares with the intent to sell them at a higher price - maybe some years later - you are trading. Here you look at price attractiveness and capital appreciation from perceived future demand for the company's shares.
Perfect one. It's not about timing, as traders not only use technical but also fundamental analysis.
 
#8
Trading works on a buy and sell principle meaning that you buy a security and sell it within a short period of time say a day or a week.
Whereas Investment is based on a buy and hold principle where one holds a security for a long period of time say a year or more than that.
The main goal of a trader is to earn profit from a hike in price whereas the goal of an investor is to generate wealth for future.
Another difference between trading and investment is the amount of risk involved. Trading involves a higher degree of risk due to quick fluctuations in prices of stocks as compared to investment.
 
#9
how trading is different from investing and which one is more profitable?
Trading and investing are two genres of earning profits in the equity market. However, both are quite different from each other. Here’s a brief discussion on the points of differences between the two.

The major difference lies in the time span of both. Where trading involves buying and selling stocks in short time gaps, say a day or a week, investing is based on the buying and holding principle, that is, investors invest their money for time that can extend to even a decade. Secondly, traders benefit out of the price fluctuations in their stocks. When a stock’s price gets higher, they may sell it and book a profit. But investors have to be creative and build such an investment portfolio that can make them earn good return in the long run.

Trading is affected by the daily market cycles, whereas investing is not affected by them to that an extent. Therefore, the risk involved in trading is much more than investing, and so is the return. Going further, trading is all about grabbing hold of the best opportunity coming your way, executing the order then and there and booking the profit. However, with investing you have to be a little patient and let the stock reach its full potential to earn good returns.
 
#10
how trading is different from investing and which one is more profitable?
Trading:
Requires considerable knowledge about the technical and market sentiments. You can get more profits at the same time you will loose more. You should follow the rules and don't get deviated.
Investing:
Safer than trading and requires time and passion, if you choose good products and stay invested for longer period then the reward will be higher. SIP is one among to get good returns.
 

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