Investing Vs Trading : Which Is Better?

There are perhaps many discussion and debates about which is better. Should you opt for investing or should you focus on trading? The main difference between these two are time frames

  • Investing usually takes a few months to a few years before you realize your profit
  • Trading can range from a few minutes to a few hours to a few days

The type of analysis associated with investing is fundamental analysis. Traders usually use technical analysis to enter and exit trades.

When you are a trader you:

  • Don't care about the fundamentals of a company

The Truth

There is no approach that is better than the other. It all boils down to your time availability and preference. If you are a busy person with a busy job, investing is better for you. However, if you like to be more involved in your stocks, then trading is better for you.

Whether you are an investor or trader, you can use stock charts to make your buying decisions.

Patterns Look The Same For Investing Or Trading

One of the things that not many people realize is that chart patterns of profitable stocks look the same whether it is for trading or investing. The only difference is the time frame.

Take a look at the 3 charts below.

  1. Chart one is a 60 min chart or hourly timeframe
  2. Chart 2 is a daily chart
  3. Chart 3 is a weekly chart

Notice how they all look almost the same. You buy the dip and sell the rally.

Hope you now realize that you can trade and invest using stock charts. You don't need to learn any fundamental analysis when it comes to investing. If you learn how to analyze stock charts which we will teach you here, you can trade or invest. The choice is yours.

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