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Difference between trading and investment in financial analysis?


 Trading and investment are two different ways of approaching the financial markets.


Trading refers to the buying and selling of securities (such as stocks, bonds, or options) with the goal of making a profit from short-term price movements. Traders typically hold securities for a short period of time, often just a few minutes or hours. They use various technical analysis tools, such as charts and indicators, to make buy and sell decisions.


On the other hand, Investment is the purchase of securities (such as stocks, bonds, or real estate) with the goal of generating income or capital appreciation over a longer period of time. Investors typically hold securities for a longer period of time, often months or years, and they use fundamental analysis tools, such as financial statements and economic indicators, to make investment decisions.


In summary, trading is focused on short-term price movements, and investors are focused on long-term growth or income. Investors are more interested in the underlying value of an asset and the long-term prospects of the company or sector, while traders are more focused on the short-term price movements in the market


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