Investing and Trading what are the differences?

 

INVESTING

Investing: It is the way to put money in a company and buying some quantity of shares from company in the from of virtual shares which have the value equal to amount of money being paid to company. 

Normally shares are brought from company for long term period that may very from a month to new years to get good amount of return on invested money and hence it is also called as long term investment. In longer term if company performs well in market an individual may earn returns in multiple times of amout of investment. 

suppose you have invested 10,000 Rs. in a company and it performs good in longer term of period then the share price may zoom more than 2 to 3 times of your actual investment. This is called investing money in shares for longer term.

TRADING

Trading: It is a way to put money in a company and buying some quantity of shares from company in the form of virtual shares which have value equal to amount of money being paid to company but the holding period of shares is so short as compared to investing.

Normally shares are brought from company for a day, a week of for a month only, then it is sold in open market to earn good amount of return on investment. 

trading is divided in two types 1. Intraday Trading  2. Swing Trading.