Forex: Trading or Investing
Investing vs. Trading
Investing and trading are distinct approaches to engaging in financial markets, each
with its own objectives and methodologies. Investing typically involves a long-term
perspective, aiming to gradually accumulate wealth over time. Investors may hold assets
for extended periods, benefiting from capital appreciation or income through dividends
or interest payments.
On the other hand, trading adopts a shorter-term approach, with the goal of profiting
from frequent buying and selling of assets. Traders seek to capitalize on short-term
price movements, holding positions for seconds (scalping), minutes, hours (day trading),
or days to weeks (swing trading). They often rely on technical analysis, analyzing
charts and patterns to identify trading opportunities rather than focusing on
fundamentals.