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Investment vs Trading, Explained The Easiest Way + [Image]

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Investing

-Typically longer term buy and hold

-In the mindset of “part of the company”

-Much less sensitive to short term price fluctuations

-Very little commissions fees due to infrequent buys and sells

-More concerned with fundamental analysis (P/E Ratios,Cash Flow, etc)

Trading

-Short term,many more transactions

-Potential for larger returns in the short term

-Sensitive to short term price fluctuations

-More paid in commissions due to many transactions

-Technical analysis based (Chard patterns, indicators , etc)

(Image Below)

 

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