Investing Vs Trading in the Share market: Understanding the Difference

Investing vs Trading: Ever wonder what is the difference between them? Which is best for you? The ultimate goal is to make money from the stock market, which we all know, right? However, investing vs trading has its pros and cons, which you must decipher before you jump into pursuing any one path. Choosing investing vs trading as a path can be a difficult choice to make! 
As per a report by Statista Research Department, the global market for online trading in the coming years may significantly rise and therefore for a beginner in the stock market, there can be a dilemma for choosing a path. Investing vs trading? Which one will be the best? 
What is Trading?A simple explanation for trading in stocks would be to buy low and sell high. That’s how you make profits by trading the stocks. It involves quick buying and selling of shares. To excel in trading, you must study the price action moves of a stock in order to identify probable movements in the near term. Hence, analyzing or studying the price chart of a stock is essential in trading. 

What is Investing?Investing involves a long-term approach, where you buy or invest in stocks with an aim to grow your wealth through price appreciation, dividends, etc., by holding on to your position for a long period of time. But how long? There is no right or wrong answer to it, nor is there any definitive period of holding. However, to give you a perspective, here is what investment guru Mr Warren Buffett has to say, “Only buy something that you would be perfectly happy to hold if the markets shut down for ten years” So, in the case of investing, it is more focused on its business, instead of just price action. 

For detailed information: Trading vs Investing

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