• MUTUAL FUND
  • INDEX FUND
  • ETF
  • PMS
  • AIF
  • PARTNERS
  • INVESTOR EDUCATION
  • INTERNATIONAL BUSINESS
  • Home
  • Blog
    Riding market trends with Momentum Investing

    Riding market trends with Momentum Investing

    What is Momentum Investing – A Simple Explanation

    What is Momentum Investing – A Simple Explanation

    The Basics of Passive Investing — Understanding Index Funds

    The Basics of Passive Investing — Understanding Index Funds

    How to Invest in Index Funds

    How to Invest in Index Funds

    Large-cap Stocks, Small-cap Stocks, Mid-cap Stocks — What is the difference?

    Large-cap Stocks, Small-cap Stocks, Mid-cap Stocks — What is the difference?

    Nifty 50 Index Vs Nifty 500 Index – A Beginner’s Guide

    Nifty 50 Index Vs Nifty 500 Index – A Beginner’s Guide

    Mutual Fund AUM: Unveiling the Backbone of Investment

    Mutual Fund AUM: Unveiling the Backbone of Investment

    Mutual Fund Taxation – Are Mutual Funds Taxable?

    Mutual Fund Taxation – Are Mutual Funds Taxable?

    Secure Your Retirement Years with Mutual Funds

    Secure Your Retirement Years with Mutual Funds

    Trending Tags

    • Videos
      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      Performance be a by-product

      Performance be a by-product

      What is Real Investing and why it requires grit and stubbornness?

      What is Real Investing and why it requires grit and stubbornness?

      5 Reason to Boost your SIP

      5 Reason to Boost your SIP

      Understanding the types of Mutual Funds

      Understanding the types of Mutual Funds

      Why SWP is wise decision than investing in Fixed Deposits?

      Why SWP is wise decision than investing in Fixed Deposits?

      Why you should diversify your portfolio?

      Why you should diversify your portfolio?

      What is NAV

      What is NAV

      Trending Tags

      • Mutual Fund Basics
      • Financial Goals
      • Asset Allocation
      • Basics of Investing
      • SIP
    • Podcast
      Ep. 13: Wisdom Tree (Part 2)

      Ep. 13: Wisdom Tree (Part 2)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 11: The Investor’s Playbook

      Ep. 11: The Investor’s Playbook

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 08: Value Migration

      Ep. 08: Value Migration

      Ep. 07: Wealth Creation Studies

      Ep. 07: Wealth Creation Studies

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Trending Tags

      • Basics of Equity
    • 5 Keys of Investing
      5 Key points to keep in mind for budding investors

      5 Key points to keep in mind for budding investors

      5 Key ways to handle market volatility

      5 Key ways to handle market volatility

      5 Key New Year resolutions for investors

      5 Key New Year resolutions for investors

      5 Key situations and errors to be avoided by investors

      5 Key situations and errors to be avoided by investors

      5 Key investing lessons from the Mahabharata

      5 Key investing lessons from the Mahabharata

      5 Key investment lessons we could learn from Holi

      5 Key investment lessons we could learn from Holi

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key mistakes investors should avoid while investing in ELSS

      5 Key mistakes investors should avoid while investing in ELSS

      Trending Tags

      • Basics of Investing
      • Basics of Equity
      • Financial Goals
      • Index Fund
      • Asset Allocation
      • SIP
      • Mutual Fund Basics
    • Wealth Creation Thoughts
    • Master Circular for ODR
    No Result
    View All Result
    • Home
    • Blog
      Riding market trends with Momentum Investing

      Riding market trends with Momentum Investing

      What is Momentum Investing – A Simple Explanation

      What is Momentum Investing – A Simple Explanation

      The Basics of Passive Investing — Understanding Index Funds

      The Basics of Passive Investing — Understanding Index Funds

      How to Invest in Index Funds

      How to Invest in Index Funds

      Large-cap Stocks, Small-cap Stocks, Mid-cap Stocks — What is the difference?

      Large-cap Stocks, Small-cap Stocks, Mid-cap Stocks — What is the difference?

      Nifty 50 Index Vs Nifty 500 Index – A Beginner’s Guide

      Nifty 50 Index Vs Nifty 500 Index – A Beginner’s Guide

      Mutual Fund AUM: Unveiling the Backbone of Investment

      Mutual Fund AUM: Unveiling the Backbone of Investment

      Mutual Fund Taxation – Are Mutual Funds Taxable?

      Mutual Fund Taxation – Are Mutual Funds Taxable?

      Secure Your Retirement Years with Mutual Funds

      Secure Your Retirement Years with Mutual Funds

      Trending Tags

      • Videos
        Understanding the different Mutual Fund categorizations by Market Cap

        Understanding the different Mutual Fund categorizations by Market Cap

        Investing in Lumpsum or SIP

        Investing in Lumpsum or SIP

        Performance be a by-product

        Performance be a by-product

        What is Real Investing and why it requires grit and stubbornness?

        What is Real Investing and why it requires grit and stubbornness?

        5 Reason to Boost your SIP

        5 Reason to Boost your SIP

        Understanding the types of Mutual Funds

        Understanding the types of Mutual Funds

        Why SWP is wise decision than investing in Fixed Deposits?

        Why SWP is wise decision than investing in Fixed Deposits?

        Why you should diversify your portfolio?

        Why you should diversify your portfolio?

        What is NAV

        What is NAV

        Trending Tags

        • Mutual Fund Basics
        • Financial Goals
        • Asset Allocation
        • Basics of Investing
        • SIP
      • Podcast
        Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 11: The Investor’s Playbook

        Ep. 11: The Investor’s Playbook

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 08: Value Migration

        Ep. 08: Value Migration

        Ep. 07: Wealth Creation Studies

        Ep. 07: Wealth Creation Studies

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Trending Tags

        • Basics of Equity
      • 5 Keys of Investing
        5 Key points to keep in mind for budding investors

        5 Key points to keep in mind for budding investors

        5 Key ways to handle market volatility

        5 Key ways to handle market volatility

        5 Key New Year resolutions for investors

        5 Key New Year resolutions for investors

        5 Key situations and errors to be avoided by investors

        5 Key situations and errors to be avoided by investors

        5 Key investing lessons from the Mahabharata

        5 Key investing lessons from the Mahabharata

        5 Key investment lessons we could learn from Holi

        5 Key investment lessons we could learn from Holi

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key mistakes investors should avoid while investing in ELSS

        5 Key mistakes investors should avoid while investing in ELSS

        Trending Tags

        • Basics of Investing
        • Basics of Equity
        • Financial Goals
        • Index Fund
        • Asset Allocation
        • SIP
        • Mutual Fund Basics
      • Wealth Creation Thoughts
      • Master Circular for ODR
      No Result
      View All Result
      Motilal Oswal
      No Result
      View All Result
      Home 5 Keys of Investing

      5 key differences between investing and trading
      0 / 5 Rating 4 Count 1

      Your page rank:

      Other Experts by Other Experts
      September 21, 2021
      in 5 Keys of Investing
      0
      5 key differences between investing and trading
      20
      SHARES
      2k
      VIEWS

      When it comes to wealth creation in equity market, investing and trading are the two genres of the field. However, investing and trading are very different approaches of wealth creation or generating profits in the financial market. Imagine, today, you and your friend bought equal amount of seeds to sow in your fields but you sold them to someone in a day because you could earn profit. And your friend sowed the seeds and let them grow for a few years till they gave new seeds. He sowed the new seeds and continued this for years and sold a lot more seeds eventually than were bought. By investing his seeds he would have made profit quite different than what you made by trading your seeds. This is simply the difference in investing and trading. To learn the same in financial markets, let’s learn 5 key differences between investing and trading.

      Period

      Print

      Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! Trader holds stocks till the short term high performance, whereas, investing is an approach that works on buy and hold principle. Investors invest their money for some years, decades or for even longer period. Short term market fluctuations are insignificant in the long running investing approach.

      Capital Growth

      Основные RGB

      Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks. Simply, trading is skill of timing the market where as investing is an art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

      Risk

      02-12-15

      Undoubtedly, both trading and investing imply risk on your capital. However, trading comparatively involves higher risk and higher potential returns as the price might go high or low in a short while. Since investing is an art, it takes a while to develop. It involves comparatively lower risk and lower returns in a short run but might deliver higher returns by compounding interests and dividends if held for a longer period of time. Daily market cycles do not affect much on quality stock investments for a longer time.

      Art Vs. Skill

      04. Illo – Man Read Newspaper

      Let’s learn it this way, trading is a one day cricket match while investing is a test cricket. You would watch skillful players in the team who are expected to strike fours and sixes to score higher in a one day match. Whereas, the art of the game is seen in the test match! Similarly, traders are skilled, technical individuals who time the market and learn market trends to hit higher profits in the stipulated time. It is related to the psychology of the market. Investors on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer term. It is related to the philosophy that runs the business.

      The ones who do

      14. Illo – Businessman on Top of Mountain

      Traders put money in a stock for a short term. They buy and sell fast to hit the higher profits in the market. Missing the right time may lead to loss. They look at the present performance of the companies to hit the higher price and book profits in short term. Investors keep themselves away from the trends and invest in value. They invest for a longer period of time keeping an eye of the stocks they hold. They patiently wait till the stock reaches its potential. Ultimately, the ones who achieve their financial goals are successful!
      Going back to our story, you are the one to decide if trading the seeds at a higher price making a smaller profit in a short time is your goal or holding on and growing more seeds to sell at much higher price in the long run is what you aim for.

      Write to us and let us your feedback on the articles. Share your suggestions of topics and your experiences with us. Do subscribe to our weekly newsletter on this page and receive updates on the new article, events and more. Please share the post to spread knowledge. #HappyInvesting

      Tags: Basics of Investing

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Stay Connected

      Recommended Videos

      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      by Other Experts
      December 27, 2022
      0

      As you know, Market capitalization for a company, which is most commonly referred to as market cap, is equal to...

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      by Other Experts
      July 22, 2022
      0

      A question that keeps coming up in your mind as an Investor is – “Whether I should invest a lumpsum...

      Performance be a by-product

      Performance be a by-product

      by Other Experts
      November 28, 2022
      0

      Many investors mistakenly base the success of their portfolios on returns alone. Few investors consider the risk involved in achieving...

      Popular Posts

      • Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        1356 shares
        Share 542 Tweet 339
      • Ep. 12: Wisdom Tree (Part 1)

        1328 shares
        Share 531 Tweet 332
      • Ep. 11: The Investor’s Playbook

        1303 shares
        Share 521 Tweet 326
      • Ep. 10: Evolution of Indian FMCG Sector

        1283 shares
        Share 513 Tweet 321
      • Ep. 09: Evolution of Indian Pharmaceutical Sector

        1177 shares
        Share 471 Tweet 294

      EquitySahiHai is an investor education initiative by Motilal Oswal Asset Management to educate and empower of yourself by through a series of videos that bring to you insights from stock market & mutual fund experts.

      Follow Us

      Browse by Category

      • 5 Keys of Investing
      • Asset Allocation
      • Basics of Equity
      • Basics of Investing
      • Blog
      • Financial Goals
      • Index Fund
      • International Investing
      • Investing Behaviour
      • Mutual Fund Basics
      • Podcast
      • SIP
      • STP
      • SWP
      • Videos
      • Wealth Creation

      Latest Posts

      Riding market trends with Momentum Investing

      Riding market trends with Momentum Investing

      September 2, 2024
      What is Momentum Investing – A Simple Explanation

      What is Momentum Investing – A Simple Explanation

      August 30, 2024

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      • MUTUAL FUND
      • INDEX FUND
      • ETF
      • PMS
      • AIF
      • PARTNERS
      • INVESTOR EDUCATION
      • INTERNATIONAL BUSINESS
      • Home
      • Videos
      • Podcast
      • 5 Keys of Investing
      • Wealth Creation Thoughts

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      Welcome Back!

      Login to your account below

      Forgotten Password?

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?