What is the difference between investing and trading?
Investing and trading are two different strategies for making money in the stock market. Investing involves buying and holding stocks for the long term, with the goal of making a profit over time as the company’s value increases. Trading involves buying and selling stocks frequently in order to make quick profits based on short-term market movements.
Investing is generally considered to be less risky than trading, since it involves holding stocks for longer periods of time and taking a more strategic approach. Trading, on the other hand, can be more profitable in the short term, but it also involves more risk.
Both investing and trading can be profitable if done correctly. The key is to develop a strategy that matches your financial goals and risk tolerance.