" Investing and trading are different strategies. The principal distinction is time. Investors hold their stock over months or years, whereas traders jump in and out of trades quickly - within, days, hours and even minutes. investors tend not to worry about short-term fluctuations or downturns, on the whole basing their investment decisions on how valuable they feel a company or market will be in the future. In contrast, traders don't need to worry about the long-term investment potential of the stock they hold, as they won't have it long enough for future worth to affect them. investors and traders look at different indicators to help them identify in which markets to place their money. Investors rely mostly on fundamental analysis - a method of creating financial forecasts using historical and current data. traders typically use charts to identify short-term patterns. for both, the general aim is always to 'buy low and sell high' but for investors it is even more important they buy stock very low, minimising their initial outlay and maximising profit over time. For traders, as long as the stock points rise, it doesn't really matter how low the initial purchase price was."
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