DIFFERENCE BETWEEN TRADING AND INVESTING (contd)

[Overcomer]

Difference between Investing and trading (contd)


Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! Trader holds stocks till the short term high performance, whereas, investing is an approach that works on buy and hold principle. Investors invest their money for some years, decades or for even longer period. Short term market fluctuations are insignificant in the long running investing approach.

To be continued...
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[Setho]

Written about trading is that it is actually for a very short time and I think that is the basic thing that describes the differences between the both of them. A traders aim is to take advantage of the volatility in the market. And investor is one who mostly thinks long-term about the future of the stocks is investing.

 

[btaliat]

Your explanation is apt for the concepts. While investing in crypto aims at long term period, trading aims at short term period. However, the profit cannot be determined as the two are capable of fetching us more money.

A trader must know some coins that are good for trading. Most time, those coins dont have high volatility. They are sometimes having less trade volume if we are checking on a day timeframe. The opposite will aptly suit the coins that are meant for trading.

To mitigate the loss that an investor may incrue, there may be need to use some tools like OCO, stop loss. While a trader always use market limit. However, the two concepts needs patience, and some basic analytical skill before they can fetch us money.

 

[eldavis]

I have come across so many persons who misuse the word trading and investing as the same thing, especially when it comes to crypto currency. Alot of persons assume a crypto trader and investors are the same thing.