Long-term investment VS trading
Long-term investing is characterized by the purchase of assets with the intention of holding them for an extended period, usually years or even decades. Long-term investors seek to benefit from asset value appreciation over time, taking advantage of the long-term growth potential of strong, well-established companies. This approach is based on the belief that the market tends to recover over the long term and that, despite short-term fluctuations, quality assets tend to generate positive returns over time.
On the other hand, trading refers to the frequent buying and selling of financial assets with the aim of making quick short-term profits. Traders seek to capitalize on daily or even intraday fluctuations in asset prices, taking advantage of market volatility to generate profits. Unlike long-term investing, trading involves a higher level of activity, constant technical analysis and quick decision making. While trading can offer opportunities for quick profits, it also carries greater risk due to the short-term speculative and volatile nature of the market. Long-term investing VS trading
