Trading versus Investing

Although some may mistakenly use the terms interchangeably, I explain how trading and investing are different and why I believe one is better than the other!

Trading: Trading refers to the activity of buying and selling a security or stock over a short period of time (“day trading” refers to same-day buying and selling). Those who trade usually have the sole intent of making quick money based off of a stock’s current price. Trading is inherently quite risky.

Investing: Investing implies that you believe in the long-term value proposition of a company. When you invest in a stock, you will normally keep it for at least a few years.

Investing vs Trading - Dangers of short term trading vs long term investing This video goes over the difference between trading (sometimes called day trading...

Stephanie Xenos

Money Muse

themoneymuse.co

steph@themoneymuse.co