Trading Vs Investing : What's The Difference? kundkundtc.com
The growth in the stock market over the years and its potential for growing one’s money makes it the asset preferred by everyone. The stock market has become easy to access since transactions can be done from any corner of the world as long as one has access to the internet. This has led people to wonder, trading vs investing which is better. In this article, we will discuss both to help you understand which one is more suited to you
Trading:
When a stock is held for a few seconds, minutes, hours, days, etc. but for less than a year, it is considered as trading. These short term trades are taken for making immediate profits. Individuals that trade on the stock market are referred to as Traders.
Investing:
When a stock is held for a longer duration of more than a year, generally 3-5 years, it is considered as investing in the stock. Investments are done with the goal of wealth creation. Individuals that invest in the stock market are referred to as Investors.
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