Topic: Difference of Trading and Investing? - page 6. (Read 29492 times)

You are absolutely correct! What a very concise and precise answer. Trading is buy and sell. It is one of the many types of investments. And it is the most common type. It is already part of the lives of our ancestors. Hence, this type of investment is very old, older than all of us here.

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 set-ups.

but there are also longterm trading, if i think trading is not limited time, so we can sell anytime as long as we want. but if investment have targets time to sell it

The main difference between the 2 is the motive for you to enter a position. If you primary motive to enter a position is because of price action or speculative events, then you're trading (basically any technical analysis). Investing is when your motive to enter a position is due to fundamental reasons, ie. you believe in a certain cryptocurrency having a massive impact on the world.

usually trading is more short term and investments are long term.

i will answer that as far as i know only, as i know trading and investing are likewise because you cant trade if you have nothing to invest so you can trade only if you have some that you invest and it mean for me that this is likewise or this two can't be separately.

Trading is about everyday work; investing is about picking right ICOs and holding for the right amount of time.

Investment is defined as the act of accumulating assets in the hope of earning future profits (long-term) and trading is taking advantage of price changes to make a profit

It is something pretty different, and it clearly seems that you don't know the real reason of trading and holding.

Trading is not for short term, there are some trades that are open for days, or more than days, so yes, i would not say that it is only for a "short term".

In simple terms, trading and investing is two different things but both have the purpose of having profit but in different ways. In my own perspective, trading is for short term and in the other hand, investing is for long term. Those two have different goals, trading is frequently buying and it is more active than investing, you also rely on changes in the market to gain profit. Investing for me is something that you put money into a certain company to support their product and if they succeed you can earn more profit.

In my opinion, if you want to investing something, you usually need to research reason, team devs, company history work, etc. before investment.
It always takes much times to complete these targets.
But for trading, the trader only need to analyse the chart price, volume and choose which coin has good chart to trade, I think so.

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.

investment with trading has a the difference is so striking.
I think investing is when you buy something of a good or a stock that you will keep in a certain vulnerable time.just like you buy bitcoin and just keep it to some extent, which you think you will gain in a few years.
trading is when you buy something stock or goods when the price is good and sell back when you get a profit.by relying on a bit of luck and research on the goods or stocks you are going to buy.

No, trading = you spend more times to trading and earn profit through small changes on the market.
Beside that, trader also have to spend more times to create strategies for short-term and long-term investment.
Not like investment, they just do that in some times.
The trader have to do that every day if it is necessary to earn profit from an unstable market everyday.

If you want to trading then you have to invest your money. There are many types of trading and investing. You don’t need to trade if you want to invest your money into any site. This is the clearance answer of this question. You have to wait long time if you want to trade and it is much more riskier and investing is less riskier than trading and you don’t need to wait for long time.
Select from this option which will more useful for you because different peoples have different choices though both of them are very useful to earn extra money. You have to understand nicely before you invested your money.

There is a thin line of demarcation between trading and investing which lies in the intention of the participant while spending money, i.e. an investor invest money with a certain view in mind regarding the return, or the output generated

Many differences in trading and investing, for example is the time period, as we know that trading does not need a certain period of time, after we buy then if we feel the profit we can sell, but investment takes longer time than trading.

trading=you actively involve in there
investing=you pick a couple of financial instrument and invest there

There's no much difference between trading and investment in terms of yielding profit but it varies like short term and long term.

Trading - Need much knowledge on the particular crypto currency you're trading before and after investing in it.
Regular or dedicated monitoring of the funds growth is required.
Do not panic attitude and patience is highly appreciated.

Investment - There's no special knowledge required other than just knowing the basic of which crypto has potential.
Need to just invest and wait for a certain period to cash out.
Regular monitoring of funds is not required but frequent monitoring like once in a month is appreciated.

      The difference between investing and trading are two different path of making profit in the financial field. Investing means making profit in an extended time period . To my point of view trading in Bitcoin will be more comfortable buying when the value decreases and sell when the value increases in order to make profitable .Investors and traders  both seeks profit investors make for a large return and traders make small profit from a short period of time.
 

I think the most fundamental difference from trading and investing is the time, we all know that if trading then we do not need a long time to profit, but if we are investing then the first thing we must understand is that investing takes time to profit.