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Tagged: investment, Trading
An investing trading are two very different method of attempting to market in financial markets the goal of investing gradually wealth over an extended period of time through the holding of a portfolio stock mutual funds bond and other investment instrument.
trading on the other hand involve the more frequent buying and selling stock commodity currently pairs on other instrument while investors at 10%to15% annual return of traders might 10% return each month
The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments. Investors often enhance their profits through compounding, or reinvesting any profits and dividends into additional shares of stock.
INVESTMENT: It is a long term sources, we can invest in asset and shares over a long period of time.
TRADING: It is a short term sources, we can buy and sell the shares within a limited period of time.
we can invest in shares for long period is Investment
we buy or sell the shares for limited period is trading
Buying and holding stocks for a longer period is called as Investment. Investor looks at the fundamental analysis of companies before buying the stock.
Buying and holding stocks for shorter time period is called as Trading. Traders looks at the Technical analysis before buying the stock.
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