Difference of Trading and Investing?

[deisik]

According to me the fundamental difference between trading and investing is the term associated with it. Any short term buying or selling activity is trading and any long term buying selling activity with the intention to earn profits in the long term is an investment. Usually, a trading has lower capital but with more frequency and in investing large capital is invested with lesser frequency.

If you talk about legit long term investments, then these will yield you a low amount calculated in percentages, so yes, in order to up your potential profits, you have to come over with a significant initial investment capital. That's why a lot people with a small initial balance jump into altcoin trading due to the heavy volatility where 50% price jumps aren't anything new. But we all know how risky that is....

One can take and hold large positions even with the small capital through the leverage feature in which he can earn good profits in small movements on the price chart so it is not necessary to have large capital in order to earn the large profit. In such cases, trader can lose 100% of his capital if there is absence of stop loss so taking extreme precaution is must

Leverage is a killing feature

I mean, in a more or less literal sense of the word. It could quickly kill your account, and ultimately, if you continue to use it, that will happen unless you have reliable insider info (which is when using leverage is fully justified). I think many have read here the story of a guy who lost 600 bitcoins while shorting. He was trading using borrowed money, and most likely, at a high leverage value at that, full of exceptions to make hefty profits. The same could happen to you too

[CyberKuro]

both of them is difference, but to make it easier to understand, when you investing, you trust your money to someone and you don't need and can't do anything with your money until certain period, when you trading, you used your skill and knowledge to generate profit and you need to some work in trading, you need to pay attention to the chart and keep the updated news everyday

so when investing you depend on somebody else when trading you depend on yourself

Indeed, who's in charge of the funds is one of the differences between them.
But trading could consider as an investment too as your funds spend to buy in order to get more profits.
The best between trading and investing? Of course investing will win the vote, due to many better options to invest your money and some has higher chance to give high return. On the other hand, trading require experiences and knowledge to judge the market in the future, to gain profit.

[thunderbitz2717]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

In investing Your entrusting your money by somebody else or in the business you are going to engage in, while in trading You use you strategy, imagination, and analysis for you to make profit faster in easiest way. because you only have two things to do in trading buying and selling only, that's it.

[Aamir1]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

Technically, trading is the process between two people buying/selling goods or currencies at a particular price. And investing is the process when someone gives away the money on a business which as a result would pay him profits within a particular period of time, though profit is not guaranteed in both of them. Trading can also be considered a kind of an investment though.

[vantyzz]

trade requires more involvement than investing. When trading the man himself makes any deal. And while investing it just gives the money to the management and to profit from.

[Pab]

Trading is a kind of investment you take short position or long one,in short you are buying nd sellng fast,in long you nvest in company stock for longer period jn both cases it is kind of investment you decide whan you buy or sell and you cn make money from daily trading.Invesment can be in anything what represent value and is not traded n stocks,for example you can buy house and sell after some time at higher price
In both cases you have to buy and it always good to sell

[Dudeperfect]

According to me the fundamental difference between trading and investing is the term associated with it. Any short term buying or selling activity is trading and any long term buying selling activity with the intention to earn profits in the long term is an investment. Usually, a trading has lower capital but with more frequency and in investing large capital is invested with lesser frequency.

If you talk about legit long term investments, then these will yield you a low amount calculated in percentages, so yes, in order to up your potential profits, you have to come over with a significant initial investment capital. That's why a lot people with a small initial balance jump into altcoin trading due to the heavy volatility where 50% price jumps aren't anything new. But we all know how risky that is....

One can take and hold large positions even with the small capital through the leverage feature in which he can earn good profits in small movements on the price chart so it is not necessary to have large capital in order to earn the large profit. In such cases, trader can lose 100% of his capital if there is absence of stop loss so taking extreme precaution is must

Leverage is a killing feature

I mean, in a more or less literal sense of the word. It could quickly kill your account, and ultimately, if you continue to use it, that will happen unless you have reliable insider info (which is when using leverage is fully justified). I think many have read here the story of a guy who lost 600 bitcoins while shorting. He was trading using borrowed money, and most likely, at a high leverage value at that, full of exceptions to make hefty profits. The same could happen to you too

I can completely understand this as I have lost my 100% capital while using leverage but as I am aware of this feature, I usually put the very low amount in trade having high leverage so I have also made good profits using it. Alternatively, no matter how much profits you have, leverage is not affordable for the long term. It kills profits with overnight charges so it is basically useful (yet dangerous) for day trades.

[ipanks]

According to me the fundamental difference between trading and investing is the term associated with it. Any short term buying or selling activity is trading and any long term buying selling activity with the intention to earn profits in the long term is an investment. Usually, a trading has lower capital but with more frequency and in investing large capital is invested with lesser frequency.

If you talk about legit long term investments, then these will yield you a low amount calculated in percentages, so yes, in order to up your potential profits, you have to come over with a significant initial investment capital. That's why a lot people with a small initial balance jump into altcoin trading due to the heavy volatility where 50% price jumps aren't anything new. But we all know how risky that is....

One can take and hold large positions even with the small capital through the leverage feature in which he can earn good profits in small movements on the price chart so it is not necessary to have large capital in order to earn the large profit. In such cases, trader can lose 100% of his capital if there is absence of stop loss so taking extreme precaution is must

Leverage is a killing feature

I mean, in a more or less literal sense of the word. It could quickly kill your account, and ultimately, if you continue to use it, that will happen unless you have reliable insider info (which is when using leverage is fully justified). I think many have read here the story of a guy who lost 600 bitcoins while shorting. He was trading using borrowed money, and most likely, at a high leverage value at that, full of exceptions to make hefty profits. The same could happen to you too

I can completely understand this as I have lost my 100% capital while using leverage but as I am aware of this feature, I usually put the very low amount in trade having high leverage so I have also made good profits using it. Alternatively, no matter how much profits you have, leverage is not affordable for the long term. It kills profits with overnight charges so it is basically useful (yet dangerous) for day trades.

i don't think that leverage is a good solving problem for every people, because we need to learn more about leverage itself so we can use the leverage for save. i heard about leverage in forex trading and i really afraid to have leverage in trading especially in forex because i can imagine if i have to lost all of my money in trading. i think its better to do ordinary trading like usual and i think its really safe for us if we only have few info in trading.

[daringdiscovered]

Investing is like having a business and trading is like a job. On investing you only need to use your money to invest in a company, you don't need to exert some effort to earn. The company you invested will give you profit. While in trading, you will need some skilla to earn from it. You will use your own mind to earn. If you do nothing in trading then you won't also earn any profit.

[hawkins]

In trading, you can sell or buy what you have to gain. whereas investment, it may take a long time, and capital to make a profit. Well, both are similar, but with trading, you can control the advantage that you have, but the risk is quite high.

[micogurtiza]

Trading means buying or selling stocks in a short period of time and it depends on the volatility of such stocks. You should be knowledgeable on the latest trends or strategies used in trading. Because trading could get wrong if you are not that expert or all knowing in the stock market. While investing is just putting your money in the biggest company and making it grow which depends on your personal goal. Mine is for my retirement fund.

[pealr12]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

Theres a big difference about those  two and some still dont know it,, investing is your putting your money to a person  to make it bigger and you dont have control into it. Unike trading your the one who control all the possible things on your account .

[rchstr]

earning with investing is easy if you know that the company is having a potential for you to earn. while in trading it is fifty fifty chance so if you want to have a lower risk to earn go to investing whie if you want to have high risk you can go to trading. but in case of earning capability, trading is much butter earning than investing.

[JANGKRIK BOSS]

I think trading more risky than investment. This is because of the opportunities the prediction is wrong, and it's very difficult to guess. I advise you to choose an investment because it is more secure.

[agustina2]

I think trading more risky than investment. This is because of the opportunities the prediction is wrong, and it's very difficult to guess. I advise you to choose an investment because it is more secure.

Let's replace it on the other side: "I think investment is more risky than trading. This is because of the opportunities or chances that investment goes wrong".

See the point? It depends on how a person will manage their deals against those risk whether investment and trades. Both of it can be the most riskier that's why all the output and results depends on how a person will manage into it.

[deisik]

I think trading more risky than investment. This is because of the opportunities the prediction is wrong, and it's very difficult to guess. I advise you to choose an investment because it is more secure.

Let's replace it on the other side: "I think investment is more risky than trading. This is because of the opportunities or chances that investment goes wrong".

See the point? It depends on how a person will manage their deals against those risk whether investment and trades. Both of it can be the most riskier that's why all the output and results depends on how a person will manage into it

I guess this is called overgeneralization

That's what you seem to be doing here. That is, you are generalizing some specific case (namely, trading being less risky than investing) and drawing a conclusion which assumes there is an equality between these two notions (in terms of risks involved). Since investing can be defined in a myriad ways, this is a moot point, but if we define it more specifically, then your inference may not be correct. For example, you could claim that the robbers with knives can be more dangerous than the ones with guns. Could they really be? Some certainly could, but does it mean that the former are more dangerous than or equal to the latter on average (if the notion of average is applicable here)?

[rickadone]

In trading, you can sell or buy what you have to gain. whereas investment, it may take a long time, and capital to make a profit. Well, both are similar, but with trading, you can control the advantage that you have, but the risk is quite high.

One thing about investment and trading is they both risky, when there a passive earning without putting hard work into it there has to be a risk involved in it, and I have tried both and I can tell you that you are better off earning money with your skills, rather than stressing yourself and leaving it to the luck.

[agamasrori]

I think when used for trading is bitcoin, so basically they are the same. the difference is trading still requires work and probably could get more profit, while investment by lending bitcoin is not need to do anything but usually has greater risk of fraud.

[Vaskiy]

In trading, you can sell or buy what you have to gain. whereas investment, it may take a long time, and capital to make a profit. Well, both are similar, but with trading, you can control the advantage that you have, but the risk is quite high.

In trading we need to be much aware of the market whereas with investment the sector in which we are gonna invest need to be analysed perfectly as it's there for long term. With trading we are supposed to make good strategies in relation to the profit margin to get profit.

[Sled]

I can't say that there is a difference between trading and investing because as far as i know. When you do trading, you are already investing since you are buying an asset and you are just waiting for its price to go up or to go higher so after the price go up and after it reaches your satisfaction then you can sell it for your local money which is kind of trading. So i think there is no difference.