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What Is The Difference Between Investing And Trading

Aug 21 2012

International Money Pile in Cash and Coins

International Money Pile in Cash and Coins (Photo credit: epSos.de)

Investing And Trading

Looking to put your money into something long term can be very rewarding. However, if you are not careful you can easily think investing and trading are the same exact thing, when they are not the same thing or anywhere close to it. The problem is many people have never thought about the difference between these and think they are the same thing.

Investing is when you take some of your money and place it into an account or buy stocks with it. You are not planning on taking this out right away. Instead, you plan on leaving the money in for a long time and basically forgetting the money even exists.

When you start to trade, though, you are actively taking your money and buying items. Then you will hold onto the item for a few minutes to a couple of days before selling it. When you sell the item you are taking a gamble what you have sold it for will be higher then what you paid to buy the stock.

Getting to know the difference between investing and trading can be a great thing. The problem is many people are not aware of this difference and it can lead to major issues when they are trying to save money or even grow the money. By knowing the difference, though, you can make the proper choice on what to do with your money.

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