Equity trading and investing are two ways to participate in the stock market, but they differ in approach and goals.
Equity trading focuses on buying and selling stocks frequently to take advantage of short-term price changes. Traders aim to make quick profits by analyzing market trends, using tools like charts and indicators. It requires active monitoring of the market and quick decision-making.
Investing , on the other hand, is about buying stocks and holding them for the long term to build wealth over time. Investors focus on the potential growth of companies and often look at financial performance, future prospects, and dividends. This approach requires patience and is ideal for achieving long-term financial goals.
Both strategies have their benefits, but your choice depends on your financial objectives, risk tolerance, and the time you can dedicate to the market. While trading offers immediate returns, investing creates wealth gradually through compounding and value appreciation.