Financial Trading & Investing strategies are used by millions all around the world to grow their wealth. As a beginner, here are the most important answers you need to know to understand the difference between trading and investing in financial markets.
Q: What is Financial Investing?
A: Financial Investing is a medium to longer-term (months/ years!) approach to profiting from the price movement of financial assets.
Q: What is Financial Trading?
A: Trading is a shorter-term ( months, weeks, days, seconds! ) approach to profiting from the price movement of financial assets.
Q: What is the difference between Investing and Trading?
A:
Q: As a beginner, Is Investing or Trading – right for me?
A: There is no right or wrong answer as it all depends on personal circumstances. Somethings key things to think about as a beginner when making a trade or investment decision are as below:
- Understanding of specific markets you want to trade or invest.
- Financial Goals/ objectives
- Risk tolerance
- Time availability of you to dedicate towards research/ monitoring
- Capital availability.
Always do your due diligence before making a financial decision(s) and most importantly make sure you re-evaluate your decision(s) on a regular basis.
Remember to Know what you own, and know why you own it — Peter Lynch
Read Next: How to handle and avoid trading burnout?
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