Trading | Investing |
Objective is to generate income. | Objective is to build wealth. |
Technical analysis is more important than fundamental analysis. |
Fundamental analysis is more important and technical analysis. |
Buy with the intention to sell later. | Buy with the intention to hold forever. |
Can be both long and short. | Can be long only. |
Products that are suited for trading: Stocks, Futures, Forex |
Products that are suited for investing: Stocks, REITs, Bonds |
Strategies: Reversal trading, trend trading. |
Strategies: Growth investing, dividend investing. |