The difference between investing and trading may not be immediately obvious, even for those who are seasoned market players. This is especially so if they choose to employ both strategies for different investment goals. While both investing and trading are geared at growing your wealth through the financial markets, the mindset and commitment for the two strategies differ. Let’s break down the differences. Investing vs trading Investments are often held for a period of years — even decades — taking advantage of investment gains that include capital appreciation, dividend payouts, and/or stock splits along the way that lift the share valuations. The aim of investment is to gradually build wealth over an extended period of time, by buying and holding a portfolio of stocks or other asset classes. Trading, on the other hand, involves more frequent transactions. Those with a trading mindset often believe that the markets are inefficient and...