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The ones who do

Traders put money in a stock for a short term. They buy and sell fast to hit the higher profits in the market. Missing the right time may lead to loss. They look at the present performance of the companies to hit the higher price and book profits in short term. Investors keep themselves away from the trends and invest in value. They invest for a longer period of time keeping an eye of the stocks they hold. They patiently wait till the stock reaches its potential. Ultimately, the ones who achieve their financial goals are successful!

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Period

Period

Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! Trader holds stocks till the short term high performance, whereas, investing is an approach that works on buy and hold principle. Investors invest their money for some years, decades or f...

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Going back to our story, you are the one to decide if trading the seeds at a higher price making a smaller profit in a short time is your goal or holding on and growing more seeds to sell at much higher price in the long run is what you aim for.

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Capital Growth

Capital Growth

Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks. Simply, trading is skill of timing the market where as investing is an art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the mar...

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By investing his seeds he would have made profit quite different than what you made by trading your seeds. This is simply the difference in investing and trading.To learn the same in financial markets, let’s learn 5 key differences between investing and trading.

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Art Vs. Skill

Art Vs. Skill

Let’s learn it this way, trading is a one day cricket match while investing is a test cricket. You would watch skillful players in the team who are expected to strike fours and sixes to score higher in a one day match. Whereas, the art of the game is seen in the test match! Similarly, traders are...

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Investing and Trading

Investing and Trading

When it comes to wealth creation in equity market, investing and trading are the two genres of the field. However, investing and trading are very different approaches of wealth creation or generating profits in the financial market. Imagine, today, you and your friend bought equal amount of seeds...

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Risk

Risk

Undoubtedly, both trading and investing imply risk on your capital. However, trading comparatively involves higher risk and higher potential returns as the price might go high or low in a short while. Since investing is an art, it takes a while to develop. It involves comparatively lower risk and...

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CURATED FROM

IDEAS CURATED BY

shaanma

I like to motivate and give advice to others. I want that everyone should be successful in their career with their skills and passion...

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Growth Stocks

Great companies that are rapidly growing will always trade at high P/E's (Facebook, Amazon etc). Value investors will always tell you to stay away from companies with high P/E's. Ignore them.Β 

Matthew's advice: buy growth stocks that are hitting new 52-week highs, or even all-time n...

The January Effect

It is defined as a perceived seasonal increase in stock prices during January.

Analysts generally attribute this rally (a period of sustained increases in the prices of stocks, bonds, or related indexes) to two factors.

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Betting on a hot stock isn't worth it

Betting on a hot stock isn't worth it

Despite news headlines on life-changing investments on one stock item like GameStop, it is too risky to make short-term bets with sizable sums of money on what a stock is going to do next. Instead, some of the most respected investors in the world have long said the best ...

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