Business

Trading vs Investment: Which one is more better?

Image credits: Pexels

Purpose:

Trading aims for short-term gains, while investment focuses on long-term growth.

Image credits: Pexels

Risk:

Trading is often riskier due to short-term market fluctuations, while investments may offer more stability over time.

Image credits: Pexels

Time Commitment:

Trading requires constant monitoring, whereas investments can be more passive, demanding less frequent attention.

Image credits: Pexels

Knowledge:

Trading demands in-depth market knowledge, technical analysis, and strategies. Investment may require a broader understanding of economic trends.

Image credits: Getty

Capital Requirement:

Trading may necessitate more significant capital due to frequent transactions, while investments can be initiated with lower amounts.

Image credits: Freepik

Tax Implications:

Investments may offer tax advantages for long-term holdings, while trading may incur higher taxes due to frequent trades.

Image credits: freepik
Find Next One