In present day’s context, the processes of wealth accumulation and wealth creation centre primarily around two fundamental concepts – Investing and Trading. For an individual to create and accumulate wealth effectively and efficiently, it is of vital importance that the individual understands and grasps these two concepts very well. In this case, the first question that the individual may possibly ask would be as follows:

What is investing and trading respectively?

In essence, investing refers to the act of purchasing a stock or other financial instrument and holding them for a long period of time before disposing them off for a profit. It primarily concerns the identification and assessment of attractive investment opportunities and allocating financial resources into these opportunities with an expectation of favourable future returns over a certain period of time. To identify and assess investment opportunities, investors typically adopt fundamental analysis to carry out their assessment (Equities …