Trading vs Investing

%24 Trading VS Investing 00 Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in 00 one-night stands a romantic. Warren Buffett GOAL Investing is to steadily build wealth over a period of time through buying & holding of investment instruments. Trading is generating returns with often buying and selling of shares. Belief Share price will move in a direction to achieve the target The company will perform well in future and come up with returns in form of dividends Profit 24 Buying shares at a lower price and selling at a higher price Reinvesting profits and dividends on stocks into additional shares of stock Period Short period of time, sometimes less than even minutes Long period of time, sometimes even decades Return 10 % return each month 10-15% return anually Tools Technical Analysis Moving averages Market Fundamentals O Price/earnings ratios O Management forecasts. Oscillators Strategy Buy to Sell Buy to Hold Protection Protective stop- loss orders to ensure that they close out losing positions at pre- decided price Survive the down trend with an expectation that that prices will recoil & losses will be recovered THE END References: www.investopedia.com www.educba.com .......