What is Investment and Trading
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