Topic: Difference of Trading and Investing? - page 42. (Read 29464 times)

A very good question to discuss. Here I will discuss the characteristics of investing and trading. Investment is defined as an activity to invest capital. Thus, any economic activity that requires capital is considered an investment. Investment is passive. That is, you as an investor does not run the business directly to gain profit because there are already other parties who manage the money. And you just stay enjoy the benefits (did not rule out the possibility of loss) only. The opposite of investment is trading, which is more active. As an investor, you are a business actor who must work alone to get a profit target in a certain period. Profit and loss as a result of the capital you cultivate depends on your own as a trader. If successful manage it, you will get a profit. Instead, you will lose large amounts of money if you manage it casually.

One example of trading is investment activity in the stock exchange or foreign exchange (forex). You should begin to understand the nature of forex trading, trading strategies, and factors that can affect your profitability in the trading world. Because the nature of trading requires investors to be active.

i think it's enough, hope can be beneficial to all. thanks

Investing is supporting something with your fiat or any forex. Whilr investing is just for cash flow. Your purpose is just to to acquire. The two have chance, if yoi knowcwhat you are performing threat will be lessen.

I believe that trading is a considerably less risky organization. In trade you constantly have on hand a item that has a residual value, and when investing you can keep with shares that are well worth absolutely nothing.

Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments. Investors often enhance their profits through compounding, or reinvesting any profits and dividends into additional shares of stock. Investments are often held for a period of years, or even decades, taking advantage of perks like interest, dividends and stock splits along the way. While markets inevitably fluctuate, investors will "ride out" the downtrends with the expectation that prices will rebound and any losses will eventually be recovered. Investors are typically more concerned with market fundamentals, such as price/earnings ratios and management forecasts.

Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments with the goal of generating returns that outperform buy-and-hold investing. While investors may be content with a 10 to 15% annual return, traders might seek a 10% return each month. Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time

Trading and Investing are completely two different thing, Investing as the name suggest you invest you money in some sort of currency, community, shares or any thing else for a period of time. Here you try to gradually build your wealth, in simple words you invest your money and wait for results but Trading on the other hand is frequent buying and selling of commodities, stokes, currencies. But one should remember that both Trading and Investing involves risk it is just that the amount of risk is higher in trading as compared to investing.

When you do investing, you put your trust in the company that will hold your money. You wont do any decision and just hope that the company will be successful for you to earn but in trading, youre the one who decide. The when and how you will handle the money is yours so you will have to be inform on whats happening in the market.

Trading is buying or selling a certain security and then selling or buying it to a higher or lower price with the hopes of earning profit from the trade. There are many types of trading like short term or long term term and it depends on the trading style of the trader. When a trader hit its target profit, then he would take the profit but if it goes the other way then he may hold or sold at a loss. When someone trades, he is actively participating in the trade while in investing, he may do it actively or passively. An investment is usually putting your money to something with the hopes of earning a return from its capital usually fix but there are others when it varies.

About the difference of trading and investing would be in trading you trade an item or goods at a person or from the market then you immediately have the traded item handed out to you which have the same price as the item that you are trading.  But in investing you prepare for the future means you might buy several items or things that you will be using but instead of trading it immediately you hold on to that item and waited for the price to be higher before selling it. That's why investing and trading is like two sides of a same coin, but the great thing about this is that you can do trading and investing at the same time. You can't trade half of your item to get an immediate return while investing and holding on to the other half for future use.

Using Miriam Webster Dictionary, Trading is an activity or process of buying, selling or exchanging goods or services, while Investing is to commit a money in order to earn a financial return (a form of redeeming one's money).

There would be so much risk in engaging one self to trading, for it demands you to work a lot into the process and can profit a little while losing a lot. It is a game of luck so more people would rather investing so that they would acquire points (btc) and prefer fr themselves up to future.

Damn agreed! You have nicely explained the differences between trading and investing. Indeed many people prefer investing over trading because trading has bigger risk of grand losses whereas investing is much secure like investing into bitcoins is definitely going to produce profit but trading may put you in loss.

actually trade & investment is similar or almost the same only if the investment of large companies local to international who acts as an agent for several companies and other wholesalers,

You have defined both the terms very well. This is what is the difference actually is. In Trading you keep on exchanging one thing for the sake of other or you take something from a certain place to some other place. While in investing you need to go and travel around, all you need is money and you can put it in anywhere you like.

In my own understanding without looking at google ,  investing is you are spending your money into something like shares, bonds, properties that hoping to gain profit from it over time. It can also be putting it into a real business and you do all the efforts to grow it. You can also invest through franchising. While trading involves buying and selling something or stocks or bitcoins and you do all the strategies in order to profit. You have to be more skilled in trading and more updated in current events. Both are risky, but I choose investing to have lesser risk than trading.

But in investment you will not be able to have full control on your funds and even it can go wrong in future but in trading you can move your funds according to your wish and also can decide when to buy or sell which can give you better profits then investing.

when we say trading it is a process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries. While when we say investing itin is your expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.

I agree, money can be done both in investment and in trade. Here everyone must decide for himself what is more convenient for him to do. Many can not spend a lot of time on earnings on the Internet. Therefore, for them investing is an ideal option

Not necessarily, you may do a lot of things to raise money instead of investing, you could sell something valuable like a house or a car you could save every single cent that you can or like some do you could rise money with friends and relatives that believe in your capacity to make money in trading.

Wrong. Investment is not you trust someone to grow your cash. I will give you an example, I invest on business, who will I will rely on to grow my capital? Of course me as a head and my staffs. How about online investment, I will invest on bitcoin and let it sleep. Now who have the authority here to take care of the risk? Of course, it's me.

Investing is not always you will invest money on a site. That is a shit method and can never be called a good investment.

For me There's no difference between Investing and Trading. Both of them need funds, Both of them have risk, both of them will gain profit or lose funds. If it is in altcoin, both of them buy and sell their altcoins if they have already profit. So for me there is no difference

I don't think that's a difference though. You pretty much are still in control when you invest and your decisions would determine whether your investments would be successful or not. Much like in trading. There's really not much diffrrence between the two here.