Trading vs. Investing – What’s the Difference?

Traders and investors both seek to make a profit in financial markets. However, their methods of achieving this goal are completely different.

In general, investors aim for returns over a longer time frame – years or even decades. Since investors have a longer time horizon, their targeted returns for each investment tend to be larger as well.

On the other hand, traders try to take advantage of market fluctuations. They enter and exit trades at a faster pace and may aim for smaller returns with each trade (as they often enter multiple trades).

Which is better? Which is more suitable for you? That’s a decision for you to make. You can start by getting to know the markets, then learn practically. Over time, you will be able to determine which suits your financial goals, personality, and trading profile better.