Yes, most of us know it, which is why we love to go for individual stocks/shares, speculative plays and assets, and going for the latest flavour of the moment. And admittedly, I am guilty of that, too.
Though the words ‘investing’ and ‘trading’ are used interchangeably by many, the main distinctions between them are the methodologies used and time horizons; in investing, we have different styles such as passive, active, value, dividend, etc., and the time horizon is long (at least 10 years for my definition), whereas for trading, signals, trendlines and indicators are usually used for decision making, and the duration between a buy and sell transactions are at most one year.
Due to the long duration nature of investing, and if we do not really have many hobbies and non-monetary preoccupation, the tendency and temptation to go for “quick bucks” are there. Since we have the knowledge of the financial markets and their instruments, why not make use
...