facebookWhat is the difference in Trading vs Investments? As in the difference in holding a stock and sell later vs trading a stock. In trading, do I actually buy a stock? - Seedly

What is the difference in Trading vs Investments? As in the difference in holding a stock and sell later vs trading a stock. In trading, do I actually buy a stock?

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One is short term n the other is long term

Investment is for divident (income) or capital appreciation (growth), thus its focus is fundamentals and mid-long term.

Trading is for PL between buying/selling for short term hold (could be minutes to hours to days), thus its focus is on TA, hypes, and behaviourial science.

I would say there are two factors that would determine whether you coin it as trading or investment: a) objective, and b) time horizon.

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If your objective is "fast money" = trading, but if your objective is to save for retirement = investment.

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Trading is just a term; buying and selling of financial securities. So you do need to buy a stock. In fact, you can also buy currencies.

Make sure you do not buy something intending to sell off in a few days later and price keep dropping and change to call your trading investment.

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Trading is buy sell fast to earn the difference. Investment is buying the company or companies.

No different. Trading mean u buy at sell like one day or a week investing mean u hold the stock for ...

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