Topic: Difference of Trading and Investing? - page 51. (Read 29492 times)

In literal explanation, Trading is a place where all assets are ready to trade while Investing is the reason for you to have an assets, then once you already decided to choose on which coins you like to buy, that's the time for you to do some trade to grow your assets to produce profit.

How about we will do vice versa on your last statement, "when we are investing, it's means we are trading our money in some thing".

See the difference? For basics, you can read the post below yours and see that in some things, they are really different. I will not literally explained how trading and investing differs since by only looking at the basic information, you can have your own insights.

The bottom line, both are in need of money obviously and it's up to the person now how will they face the risk of losing it in the long run.

perhaps, a sentence that fairly easy to understand is the difference between investment and Traidng is, you can sell the stock, or coins you have in trading, whenever you want, according to the then-current price. whereas investment, you can not withdraw your money back, up to the agreed time.

I also think there is not much difference in that. But I would not say that both are the same thing. Trading is something you can do more often, sometimes on a daily basis, for short term profit. Investing is usually something for long term profit, since most good investments can take months, or even years to yield results.

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. The reverse is also true: trading profits are made by selling at a higher price and buying to cover at a lower price (known as "selling short") to profit in falling markets. Where buy-and-hold investors wait out less profitable positions, traders must make profits (or take losses) within a specified period of time, and often use a protective stop loss order to automatically close out losing positions at a predetermined price level. Traders often employ technical analysis tools, such as moving averages and stochastic oscillators, to find high-probability trading setups.

but i do not think that there is any difference between trading and investment. i think trading and investment are the same things. when we  are using the trading its means that we are investing our money in some thing.

As mentioned trading too can be considered similar to an investment because the maximum we invest the more will be our profit. With less investment we cannot earn a big amount through trading. Only difference is we get an small percentage for the amount placed as investment but with trading we need to participate in regular buying and selling process.

Trading can be investing also because as you said, investment is where you spend your money on someone else business and that is what you are doing in trading, you are spending your money into someone else business or what we call a coin or altcoin and then you will just keep it for the mean time and you will sell it for a higher price to gain profit. In the end it is all about the same thing that is called getting profit.

No you are wrong the difference is not just the time frame of the service but these two are different from each other. In trade a person have full control on his money and he work like his own business while in investment you actually spend your money on someone else business and he in return pay you the profit.

Most of the investment mention are investment in only bitcoin. Investment in altcoins with prospect can save a longtime wait. It is the most interesting part of bitcoin where u get engaged daily with news on the project. It is risky but if u wisely invest u can make a massive profit of your bitcoin

agree with this, because if we bought a coins and we don't sell it when the price is higher and keep to save until we see the highest price, then i think its should be an investing too. but in investing, if we send our money into one programs, we can not use our money for any of purpose and only wait after the programs is ended and we can take our money with profit.

Investing is you want your money to invest in someone or you invest it to your trust site you can see it but you can not control it is controlled by someone. But in trading your the one who control and watch your money to grow you can get it what time or day you want. So investing is definitely different from trading.

For me trading is also an investing as without putting your money you can go for trading but its true that my end result will depend on how I act during the entire process and if I make a right move at a right time then it the results will be positive for me.

What you said is correct , in trading we use our own way of system and analysis for trading and what ever outcome is our own risk but in investing you just see that where are you investing and what they are going to do with your investment so if any fault done by the invested company will be your risk also so here you are playing on other persons knowledge.

I agreed and will support you on that matter. Both of them are really had risk involved, however even is like that, the trading you are choosing something which is altcoin will be one of your assets and once you already made a choice on which coins you are going to trade you will use your investment to have that assets. Then once you had it already it is time for you to control it through trading it in the exchanges market.

I think that when you trade, the person himself determines the risks. And the result of the trade is completely dependent on his actions. When investing the result depends on another person

Most of your statement is wrong although you have the idea of it. You are defining trading in the old way, right now trading and investing can either be used in both Stock or Forex even in the Cryptocurrency Market. It really does not involve any exchange of goods but Trading and Investing can be differentiated  by how long do you hold the Stock or Currency or Altcoin. Trading typically refers to short term profit taking which can involve hourly to weekly positioning while investing takes months before you profit from it. Trading also relies heavily on Technical Analysis while Investing relies on Fundamental Analysis.

The difference of trading and investing, trading is when you have to exchange in economics example is you have to buy fish you have to trade money for you to buy fish. And investing can be stocks, bonds, mutual funds, interest-bearing accounts, land, derivatives, real estate, artwork, old comic books, jewelry -- anything an investor believes will produce income or become worth more.

In trading, it's either you'll buy and hold it for better which is also considered as investment. There are people that are saying that these two are not that far and totally the same including me. Because we believe that trading is a form of investment, however there are a lot of factors that they are making each of them different.

I guess only the time frame would be big differences between trading and investing. Investors are just long term traders in my view.