Trading versus investing

Trading versus investing

Trading versus investing in the stock market is essentially a question of time. While investing is a question of years before taking your money out, trading is “playing the market” and making a profit in days (or even in hours). So which path is the best for you? Here is some great advice from an investment website:

Often, doing …research will make the trading vs. investing decision for you. If a company seems like it is going to continue to get bigger and reap more profits, you can buy in and just let your money grow as the company does. If it seems like the company moves in spurts, it is better to use it for the short term, keep a watch on it and jump ship as soon as the next burst of profit happens. The more research you do, the easier the decision is to make.

As is so often the case, doing your homework is the most important part.

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