Are you Trading or Investing?

This entry is part 2 of 3 in the series Trading For Dummies

As beginners in this fast paced and demanding community, we often meet two types of people – traders and investors- while interacting with stocks and currencies.

Investing often involves stationing your funds for a long period of time with the goal of growing your wealth by a greater scale. It includes planning a portfolio or a form of schedule, keeping in mind long term strategies. People invest in projects that may not have value now, but believe that it may, in the future.

Trading, on the other hand, is the final execution of these investments, it’s the actual buying and selling of securities. The motive for one to trade is to profit from the fall and rise of stock market prices. Traders constantly move their money within a brokerage or investment account.

Buying shares of a start-up company that wishes to sell Whole Foods and earning an annual dividend in an investment. Buying Apple shares at $140 and selling it at $150 is a trade.

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