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
- 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.
- You need a plan!