Q1: What is the difference between investing and trading?

< 1 min read

A: Investing involves buying assets with the intention of holding them for the long term to achieve growth and income. Investors typically focus on the fundamental value of the assets and seek to benefit from their long-term appreciation. Common investment instruments include stocks, bonds, mutual funds, and real estate.

Trading, on the other hand, involves buying and selling assets within a short time frame to capitalize on price fluctuations. Traders aim to profit from market volatility and often use technical analysis to make their decisions. Trading can be categorized into various styles, such as day trading, swing trading, and scalping.