Investing vs. Trading: What’s the Difference?

Have you heard the terms “investing” and “trading”? I remember being a beginner and having no clue what they actually meant. As far as was there a difference? I had no idea! The good news is there is a very simple difference between the two. While definitions may vary slightly, at the core, the difference between trading and investing revolves around a very basic question: “how long?”. When you answer this question you’ll have a very clear idea of whether you are more of a trader or an investor. Who knows, maybe you want to be both? The sky is the limit when it comes to the world of online trading and investing, so the key will be to find what makes most sense to you. In order to take that step, let’s first define a few terms and give you the foundational understanding of the differences between trading and investing.