DIFFERENCE BETWEEN TRADING AND INVESTING

[Overcomer]

5 Differencess between Investing and Trading.

When it comes to wealth creation in equity market, investing and trading are the two genres of the field. However, investing and trading are very different approaches of wealth creation or generating profits in the financial market. Imagine, today, you and your friend bought equal amount of seeds to sow in your fields but you sold them to someone in a day because you could earn profit. And your friend sowed the seeds and let them grow for a few years till they gave new seeds. He sowed the new seeds and continued this for years and sold a lot more seeds eventually than were bought. By investing his seeds he would have made profit quite different than what you made by trading your seeds. This is simply the difference in investing and trading. To learn the same in financial markets, let’s learn 5 key differences between investing and trading.

To be continued...

React and Comment for the 5keys

 

[A K Rao]

In equity market investing and trading are different things. Trading is an investment for a short term but it is not true with investment. When you are trading you are investing on the shares and you buy them at lesser cost and sell at the higher prices. Thus you have invested for the purpose of profits in the business of trading. But when you are trading there is no investment whose long term benefits can be reaped later on!

 

[btaliat]

In a proper usage. Trading always deal with exchanging of goods for money. This is like commerce. And it is done in a jiffy. You get your money the moment you exchange with goods. This is done to replace trade by barter. While investment is done to meet a long term target. You put or pull your resources on a course and then expect a reward in the nearer future.

 

[Setho]

If you're talking about on the making of money since whenever you invest into something you are putting money into it with the bet that it is going to increase in the future. But when you are trading then you are actively trying to get advantage of the volatility in the market on a daily basis.