Investing and trading are very distinct methods of seeking profits in the financial markets. It could refer to stocks, mutual funds, bonds, and other investment instruments.
The key difference is that investors aims to build wealth through buying and extended period of holding while traders aims to generate returns through take advantage of both rising and falling markets. They also enter and exit positions over a shorter timeframe.
Investors trust that fundamentally sound companies will continue to do well and benefit from both capital and dividend gains. Traders are less concern with the well-being of companies and trust that profits are potentially awaiting to be taken off the table in both directions.
Investors buy at low prices with