What is Investment and Trading

What is Investment and Trading.. What is the diff between them

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    Investing is long term.

    Trading is short term.

    Investing: you need to have the full amount of money to buy the shares.

    Trading: it is enough to have 25% of the money of the share value.

    Investing: You need to take delivery.

    Trading: You can square it off in a day.

    Investing: You can’t sell the stocks that you own.

    Trading: You can sell the stocks that you don’t own and need to square off within 3.15 pm on the same day.

    Investing: Decision to buy the stock based on fundamental analysis.

    Trading: Decision to buy or sell based on technical analysis.

    Investing: Look into the balance sheet of the company, bottom line, profits, growth, ROCE, P/E ratio, EPS etc,

    Trading: Look into Moving Averages crossovers, RSI, candlestick patterns, trend lines, Fibonacci levels, news etc,

    Investing: Not necessary to look into stock price daily

    Trading: Need to monitor the stock price continuously

    Answered on 2019-12-21.
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