It may be mixed up between beginners at the beginning of dealing in the markets in recognizing the difference between investing and trading in general, the main purpose of each of them is to obtain profits in the end, but of course there is a big difference between all of them in the local or global markets, and we may find that all From the investor and the trader looking for profit in any way, but the way each of them in the market is significantly different in order to reap those profits, we find that trading is the closest to trade while investment aims to develop all the assets and wealth of the companies and institutions that work in it.

The difference between investing and trading

In order to be able to reap more profits, you should know a lot of matters related to both investing and trading in order to achieve those profits, as each of these methods has their own negatives and positives, and they are as follows:

Investment pros :

  • Many experts emphasize that the probability of success in investing in the term is much better than the probability of success in trading.

  • Also, the percentage of obtaining fixed returns on an annual basis is much greater than that of trading.

  • And the person who works in investing is not exposed to much pressure and psychological effort that falls on the trader.

  • The person requires much less commissions than the trader pays.

Investment negatives :

Despite the many positives that exist in investing, there are several drawbacks to it, among which is that the investor gets a lower percentage of returns in the short term, unlike trading, and the person may lose his passion for investing as a result of obtaining less money than the private investment portfolio offers. Its a loss in the future.

Trading pros :

  • In the event that the trader was able to make profits, it is evidence of getting more profits and significantly higher than the investment.

  • It is possible to make more profits in a short period of time.

  • Also, the chance of success in trading is greater than trading in investment, which guarantees the person making more profits.

Trading negatives :

As is the case, despite the rapid success and obtaining more profits when trading, the person is exposed to more negatives in this way, which includes giving more large fees to brokers as the commission is calculated based on the orders for buying and selling, as well as That this process may require a lot of time and effort in order to achieve these profits, unlike what happens in investment.

In the end, it can be summarized that the difference between investing and trading is a big factor of time, and each of them agrees to obtain profits as both the investor and the trader seek to obtain a lot of profits in the local market or the global market, and we may find that the investor has It needs more time in order to get more profits, while the trader makes a lot of money as a result of taking advantage of the high or low prices of the thing being traded. Profits may be lower in the beginning, but they increase in the short term.

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