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<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Holding the stocks for a longer period of time is investment,buying or selling with using capital for short term like day, week or till expiry is called as trading.</span>
the stocks held for a long term is investment.
the stocks held for a short term is trading.
Investing and trading are two very different methods of attempting to profit in the financial markets. 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. Investments are often held for a period of years
Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing. Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time. The reverse is also true: trading profits are made by selling at a higher price and buying to cover at a lower price (known as “selling short”) to profit in falling markets. Where buy-and-hold investors wait out less profitable positions, traders must make profits (or take losses) within a specified period of time, and often use a protective stop loss order to automatically close out losing positions at a predetermined price levelIf a stock is purchased and hold for a long time usually a year or more it is considered as an Investment.
in a stock market frequent buying/selling of the stock is considered as trading.<b></b><i></i><u></u>
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