It is now 2017 nearing 2018 where majority with an electronic device can easily gain access to the securities market without stepping out of their house.

With investing and trading made easy with advancement of technology, this article breaks down the key differences between the two whilst keeping terminologies as simple as possible.

TL;DR – Key differences between Investing and Trading   Investing Trading How it works Buy and Hold then Sell Buy then Sell
Sell then Buy (Shorting) Strategies Buy and Hold Scalping (Intra-day)
Day trade (Daily)
Swing Trade (Weekly)
Seasonal (Monthly) Duration Usually Long-term Usually Short-term Direction Up Up
Sideways Source of Revenue(s) Capital Gains
Dividends Spread How does it work? Investing Trading Buy & Hold then Sell Buy then Sell
Sell then Buy (Shorting) In investing, one usually buys a security and holds it for a long-term before selling them In trading, one may either buy the security first before selling or sell …