Difference between Trading and Investing

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Difference between Trading and Investing

This article was posted on Jun 25, 2009

A Large number of people are confused with what is trading and what is Investing. Investing on one hand is like buying a asset (a bunch of stocks is Stock market) and holding it for a long time say 10 or more years.

Many Investors buy stocks for long run and then sell them off in huge profit. Some big investors such as Warren Buffet have made more money in Long Term Investing or Investing rather that in Trading (Intraday).

Trading on the other hand it like buy a stocks for 2-4 Days or Intraday trading. In these volatile markets its very difficult to make good profits in Intraday trading, some traders intenend to buy stocks for short term and then sell them off in profits

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4 Responses

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Pb Says:
October 26th, 2010
Posted at: 11:46 pm
What is NPM & OPM
Kritika Says:
September 12th, 2012
Posted at: 9:29 am
You're right, investing in stock can make you a lot of money if you're cuaefrl. I'll walk you through how to do it.1. First, choose your stock. I suggest you go online and look up some stocks. Find a few that sound promising, then make sure you research them thoroughly. (I've got a hunch that all kinds of green technology is going to blow up in the next few years, so I'd start there.)2. Find a stockbroker. Your bank might operate as your stockbroker, or you could look up a stockbroking company.3. Tell your stockbroker what stock you want to buy. He/she may give you some advice; you should take that advice into consideration. Once you're absolutely sure you want to buy that stock, tell him/her. Then you've bought stock.You can be any age to buy stock. Also, a mutual fund is where a lot of people pool in their money to invest.
R.Vaidehi Says:
December 16th, 2013
Posted at: 9:00 am
What is meant by PE?
Please explain
CB Says:
December 16th, 2013
Posted at: 9:05 am
Hi R.Vaidehi, its also called "put" traded in options segment. hope this helps: http://nseguide.com/options-the-basics-of-call-and-put/