trading vs investing

Trading vs Investing

Trading and investing follow different methods and approaches for a financial return.

Trading refers to buying and selling stocks on a regular basis to earn a profit based of market fluctuations and stock price.

Investing refers to a buy and hold strategy of investments for a long period of time where investors earn a return based of growth

If your goal is to build wealth over a long period of time then you may look into investing, if your goal is to quickly generate returns then you may want to look into trading.

Ultimately the choice of which one is better for you boils down to the following questions:

• What’s your risk appetite?

• How much time you’ve got?

• How much capital you’ve got?

• What is your financial objective ?

You can even participate in both based off your personal financial situation, level of knowledge, interest and risk appetite.