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Trading typically involves more frequent buying/selling of stock(Short period of time 2-3 days/Intraday trading). In this risk is higher when compared to Investments.
Investments is Buying bunch of shares for a longer period which gradually builds Wealth.
<p class=”MsoNormal”>For future backpack, who wants to invest the money in some companies for long term, literally FD in bank or mutually funds investment.</p>
<p class=”MsoNormal”>Trading is like to concentrate daily market and using the opportunity on right time to make money quick.</p>More frequent buy/sell or sell/buy of shares for short term gains are known as Trading. The holding period may be from minutes to months.
Buying shares and holding it for some period of time for appreciation will generally called as Investing. This holding period can be in years.
Trading – Placing buying/selling orders in stock window and finally executing the same is known as trading.
Investment – Buying a share and holding it for a longer period. Thereby our money, which we spend to buy shares, stays invested with the same company, hence this mode is known as investment.
Investment: Investment is a long term process to buy ad sell the stock. Risk ratio are comparatively less by averaging the stock due to long term. If the prices fall due to market suitation , its the opportunity to buy the stock. Dont need to monitor the stock daily when we are the investor. If u hold the stock more than a year , your profits are tax free.
Trader: Trader is a short term process to buy and sell the stocks.Risk ratio is high due to limited time, We need to track the market frequently and regularly.
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