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Tagged: investment, Trading
Trading: Trading is a process where buy and sell between two parties takes place after an agreement. It is usually a short term.
Investment: Investment is done with an aim to make profit over a period of time. It can be investments in the form of FD, mutual funds etc.
Investment – A person holding an asset for a long time is called Investment.
Trsding= A person holding an asset in a short time is called Trading.
Buying a stock and holding it over a period of time is known as investment.
Holding stocks for short period (days, weeks and few months) is considered as training.
Basic difference is there in the name. If a stock is purchased on an Intraday basis or BTST, or intent to buy and sell for a shorter term, it can be considered to be for trading purposes. Whereas, an Investment is a planned trading meant for an intended longer period. Investments can be for short term, medium or longer term.
Investments is instrument thinking long term returns with current funds, trading is a activity with current returns based on risk and return with
funds.
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