DIFFERENCE between INVESTING and TRADING:

 


There's a man. He is married and has a wife. He is also dating other women who is his girlfriend. So here, having a wife represents 'Investing' and dating a girlfriend represents 'Trading'. Difference between 'Investing' and 'trading' :- This is the most common query with all the beginners in market. Let's understand it with the help of this anatomy. ~ Wife is long term. Girlfriend is short term. ~ Wife was arranged by his family So investing is simpler and needs less efforts. He had to propose his girlfriend with lots of efforts. Trading requires special skills. ~Wife gives him happiness in the long run in the form of children and family life. Investing gives benefits of compounding of capital. Girlfriend gives him quick happiness. Trading can give quick profit. ~ He had to commit to his wife for a very long time. Investor expects long term gain. ~ He often leaves his girlfriend when he gets bored. Trader is concerned with profit. ~ He cannot marry too many times. His dates can be recurring. Last but not the least - Why he keeps a girlfriend when he has wife ? ~ He wants quick profits in the short run. So here's the difference between 'Investing' and 'trading'. This is the simplest way in which I can explain

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