Difference between Trading & Investing
Most people believe that trading and investing is same and there is no difference between these two terms;
however, in reality both are different terms. They both are methods of obtaining profit in the financial
market. In other words, investors always invest for the long term through buying and holding, whereas,
traders use strategies to obtain good returns in short term. “The stock market is a device for
transferring
money from the impatient to the patient.” – Warren Buffett
Means, traders look to obtain as quickly as possible while investors want to build wealth in a gradual
manner. Indeed, investors take difference approaches and even reinvest to get good returns. On the other
hand, traders are mainly involved in frequent transactions to gain profit.