The reason why I’ve decided to write about similarities as well as differences between investing and trading today is because, of late, I have noticed many newbies mix up between the two – some of them are looking to buy companies to hold for the long-term (but refer to them as “trading”), while there are some who are looking for short-term profits (but refer to them as “investing”.)

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1230  followers.

I hope that, after reading through this simple post, you will have a better understanding about both investing as well as trading:

Similarities between Investing and Trading

  1. You buy and sell the same way

One of the most obvious similarities between the two is that, you buy and sell the same way on your brokerage account.

  1. You need a plan!