Is investing … trading?
Is trading … investing?
As I write, there are many people who got the two mixed up, thinking that they are the same. It has added to the confusion of what investing (or trading) really is in their essences. The results are catastrophic. Without realising that they are different, millions had lost trillions of dollars in the stock market.
Before I answer the question above, let me get this straight:
‘Investing is not Trading.’
What is Trading?
Trading is an activity that aims to profit quickly from stock price movements for the short-term. The holding period of a stock can be as short as mili-seconds to seconds, minutes, hours, days, weeks, and a few months. In essence, the act of trading is likened to one who manages a grocery store and views that his stocks as ‘inventories’ like soft drinks, snacks, toiletries, … any products in