Investing and trading are two distinct methods of attempting to profit from the financial markets. Both investors and traders seek profits from market participation. Investors typically seek higher returns over time by buying and holding. Traders, on the other hand, use both rising and falling markets to enter and exit positions in shorter time frames, resulting in smaller, more frequent profits.
Investing
The goal of investing is to gradually build wealth over an extended period by buying and holding a portfolio of one or more asset classes. This can include stocks, baskets of stocks, mutual funds, bonds, exchange-traded funds (ETFs), and other investment instruments. The goal of investing is to own the stocks that generate capital gains and dividends. Investing involves a mostly long-term period.
Trading
Trading is the buying and selling of stocks, commodities, currency pairs, or other instruments for a short period to earn more profits. The goal is to generate returns that outperform buy-and-hold investing. While investors may be content with annual returns of 10% to 15%, traders might seek a 10% return each month. The goal of trading is not to own stocks but instead to make instant profits by reaping the benefits of price movements during the day. Intraday trading, or day trading, is buying and selling shares within the same day.
The market fluctuates a lot, so share prices keep fluctuating throughout the day. Intraday traders try to make profits from these monuments by purchasing and selling the shares within a day, so trading involves a lot of risk. Traders prefer instant profit as they buy at low prices and sell at higher prices.
All market investments are subjected to market risk only you are solely responsible for the losses so invest before thorough research.