Is trading better than Investing?
The answer to this question totally depends on the preferences, motive and many other such influences. Actually, both trading and investing are good according to the purpose they serve. So, the question here is which one serves all your purpose or suitable for your preferences.
Let me highlight some points for you here to have a basic understanding.
Trading:
· They are mostly short-term investment with low price.
· The technical analysis is needed in a timely basis due to the highly volatile nature of trading.
· Its nature is very noisy as every minute details can become the matter of profit or loss.
Investing:
· They are long term investment with higher value.
· They are based on the fundamental analysis over a long period.
· The risk is much lower in this but the profit earning period is slower than trading.
· It is conducted with the target or goal in mind.
· You need to be patient with the market signals here.
This is the basic of both natures. If you still have the confusion then you can always consult with the good advisory firm such as zerodha, 100mcxtips and many more.
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