Elearnmarkets
Ā·Learn Smart, Trade Smarter!

What is the difference between investing and trading?

The distinction between trading and investing comes from the time horizon and strategy. Investing is about long-term wealth generation by purchasing and holding stocks for several years, usually depending on a company's fundamentals. Trading, however, encompasses short-term purchases and sales of stocks to gain from market fluctuations. If you want to be an actively involved participant in the stock market, it’s essential to first learn stock trading to understand market trends, timing, and risk management effectively.