Trading and investing - what's the difference?
Both traders and investors strive to make a profit in financial markets. However, their methods of achieving this goal are different.
Typically, investors want to make profits over a longer period of time - remember what we said about years and even decades. And because investors have a longer time horizon, their target return for each investment tends to be larger, too.
On the other hand, traders try to benefit from market volatility. They open and close positions more often and allow lower returns on each trade (as they often open several at once).
Which strategy is better? Which one is more acceptable for you? You decide. You can start by studying the markets and then start practicing. Over time, you will learn to determine which strategy is best for your financial goals, personality, and trading profile.
