- Trending Categories
Data Structure
Networking
RDBMS
Operating System
Java
MS Excel
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
Physics
Chemistry
Biology
Mathematics
English
Economics
Psychology
Social Studies
Fashion Studies
Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Differentiate between investing and trading.
The major differences between investing and trading are as follows −
Investing
Creates wealth over a long period of time.
Buying and holding.
Market fluctuations has no effect.
Add on benefits − bonus, dividends etc.
Fundamental indicators are EPS, price to earnings, current ratio etc.
Long term period.
Creates wealth by compound interest and dividends.
Low risk.
Industry, economics, financials, competitors etc. will be affected.
Very few brokerage charges.
Makes sound investments.
Trading
Generates profit frequently.
Buying and selling of stocks.
Daily market fluctuations will effect.
No add on benefits.
Technical indicators: moving averages, stochastic oscillators etc.
Short term period.
High risk.
Psychology of market, money management, risk rewards etc. will be affected.
Have brokerage charges.
Requires active environment.
- Related Articles
- Difference between Hedge Fund and Prop Trading
- Difference between Carbon Tax and Emission Trading Scheme
- What is difference between profit and loss account and trading account?
- Differentiate between turnover and profit.
- Differentiate between ADR AND GDR.
- Differentiate between invoice and bill.
- Differentiate between company and firm.
- Differentiate between finance and accounting.
- Differentiate between EBIT AND EBITDA.
- Differentiate between revenue and turnover.
- Differentiate between mergers and acquisitions
- Differentiate between tender and quotation
- Differentiate between trademark and copyright
- Differentiate between offer and quotation
- Differentiate between piconet and scatternet
