Here in this article, we are telling you the basic concept of Investing and Trading.
In an economic sense, an investment is the purchase of goods and services that are not consumed today but are used in the future to create wealth.
In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
Trading is a basic economic concept involving the buying and selling of goods and services.
With compensation paid by a buyer to a seller or the exchange of goods and services between parties.
Trading can take place within an economy between producers and consumers.
There is one thing which we have to note that is there any relation between the two in our current situation when it comes to building wealth?
- Trading is a method of holding stocks for a short period of time. Trader holds stocks in short term.
- Investing is an approach that works on the buy and holds principle. They invest their money for a longer period. In other words, we can invest into trading as well.