What's the difference between trading and investing?

There are a few differences between trading and investing.

Investors don’t want to make risky bets on stocks; they want to buy shares in companies that are likely to grow. Investors often spend more time researching stocks before buying, and they may hold the stock for years.

Traders take a much shorter-term view of the market, looking at technical factors like chart patterns, analyst recommendations, and trends in the company’s share price.

They look for stocks poised to make big moves in price; for example, traders may trade or invest when there is news about an upcoming merger or acquisition.

Traders tend to focus on short-term movements in share prices, while investors place less emphasis on these factors.